Freshwater Programs: Federal Agencies' Funding in the United States and Abroad
Published: 2005-03-11T00:00:00

Fast Facts:

Highlights:
section_title: Why GAO Did This Study
paragraphs: As the world's population tripled during the past century, demand for the finite amount of freshwater resources increased six-fold, straining these resources for many countries, including the United States. The United Nations estimates that, worldwide, more than 1 billion people live without access to clean drinking water and over 2.4 billion people lack the basic sanitation needed for human health. Freshwater supply shortages--already evident in the drought-ridden western United States--pose serious challenges and can have economic, social, and environmental consequences. Multiple federal agencies share responsibility for managing freshwater resources, but consolidated information on the federal government's financial support of these activities is not readily accessible. GAO was asked to determine for fiscal years 2000 through 2004 how much financial support federal agencies provided for freshwater programs in the United States and abroad. For the purposes of this report, freshwater programs include desalination, drinking water supply, flood control, irrigation, navigation, wastewater treatment, water conservation, water dispute management, and watershed management.
section_title: What GAO Found
paragraphs: Of the over $52 billion in total financial support provided by federal agencies for freshwater programs during fiscal years 2000 through 2004, about $49 billion was directed to domestic programs and about $3 billion supported programs abroad. Domestic program activities involved 27 federal agencies, but 3 agencies--the Environmental Protection Agency, the Army Corps of Engineers, and the Department of Agriculture's (Agriculture) Rural Utilities Service--accounted for over 70 percent of the financial support. Eighteen agencies supported domestic drinking water supply programs and 16 supported domestic wastewater treatment and watershed management programs. Grant programs of over $22 billion and direct federal spending of about $22 billion accounted for most of the domestic financial support. In addition to the about $49 billion that directly support freshwater activities in the United States, some agencies also have programs that may indirectly support such activities, but it is difficult to determine the dollar value of this indirect support. For example, Agriculture's Conservation Reserve Program supports multiple activities, including irrigation, but information on each activity supported by the program is not readily available. Also included in the domestic program is about $175 million that the United States provided to three commissions that conduct freshwater activities along U.S. borders with Mexico and Canada. Of the estimated $3 billion in total financial support directed toward freshwater programs abroad between fiscal years 2000 through 2004, about $1 billion was recently provided for freshwater projects in Afghanistan and Iraq. Most of the financial support for international freshwater programs was provided by the U.S. Agency for International Development. Foreign wastewater treatment and watershed management programs were the ones that most of the agencies supported. The vast majority of the U.S. support for international programs was provided through grants. Not included in the $3 billion for international support are the contributions that the United States made to the general budgets of numerous international organizations, such as the United Nations and the World Bank. The international organizations used some portion of the U.S. contributions to support freshwater activities around the globe.

section_title: Letter
paragraphs: As the world’s population tripled during the past century, demand for  accessible freshwater—which makes up less than 1 percent of the earth’s  water—increased six-fold, straining freshwater resources for many  countries, including the United States. In the United States, with increasing  demand for the finite amount of freshwater available, large portions of the  country could face water shortages in the next few decades. Freshwater  supply shortages—already evident in the drought-ridden West—pose  serious challenges and can have significant economic, social, and  environmental consequences. Water shortages reduce farmland and forest  productivity and damage plant and animal species, wildlife habitat, and air  and water quality. In addition, water shortages can create potential  disputes between various water users, managers, and government entities.  Ensuring future water supplies to meet these various and sometimes  competing needs may require significant investments. For example, the  Environmental Protection Agency (EPA) estimated that utilities would  need to invest over $150 billion just to repair, replace, and upgrade the  nation’s drinking water infrastructure over the next two decades.
Freshwater supply issues are not unique to the United States—by 2025,  one-third of the world’s population is likely to live in countries facing  freshwater shortages. The United Nations highlighted these concerns when  it declared 2003 as the International Year of Freshwater. In addition, it  estimates that, worldwide, more than 1 billion people live without access to  clean drinking water, and that over 2.4 billion people lack the basic  sanitation needed for human health. Furthermore, the Secretary-General  notes that water-related diseases are responsible for 80 percent of all  illnesses and deaths in developing countries. Finally, the World Bank  estimates that countries will need to double the $70 billion to $80 billion  they currently invest annually to provide clean drinking water and basic  sanitation for the world’s population. To help address these global  challenges, the United States contributes financial support to foreign  countries and international organizations for various freshwater projects.
Multiple federal agencies share responsibility for managing freshwater  resources. Agencies provide services through direct federal spending or  financial assistance through grant, loan, and loan guarantee programs to  other parties. Direct federal spending includes payments that agencies  make for services provided by federal employees and federal contracts for  freshwater programs in the United States and abroad. Freshwater  programs include, among other things, desalination, drinking water supply,  flood control, irrigation, navigation, wastewater treatment, water  conservation, water dispute management, and watershed management  activities. Additionally, the United States makes financial contributions to  several binational commissions that support freshwater projects along U.S.  borders and to international organizations, such as the World Bank and the  United Nations, that support freshwater projects around the world.  However, consolidated information on the federal government’s financial  support of freshwater programs in the United States and abroad does not  currently exist. This information is not readily accessible because  definitions of freshwater programs and the availability of financial data  vary across agencies.
In this context, you asked us to determine for fiscal years 2000 through  2004 how much financial support federal agencies provided for freshwater  programs in the United States and abroad.
To address these objectives, we identified federal agencies that support  freshwater programs in the United States and abroad by reviewing  Congressional Research Service, GAO, and United Nations reports and the  Catalog of Federal Domestic Assistance. We conducted initial interviews  with officials from the agencies we identified to confirm that the agencies  provided financial support for these programs during fiscal years 2000  through 2004 and focused our efforts on those agencies responsible for the  majority of the federal financial support. We used a questionnaire to gather  detailed information from agencies that track freshwater expenditures. In  this report, we have only included data on the financial support that  agencies provided specifically for the following freshwater programs:  desalination, drinking water supply, flood control, irrigation, navigation,  wastewater treatment, water conservation, water dispute management,  and watershed management. We did not include financial support for  programs that may indirectly provide financial support for freshwater  projects because information on these programs’ freshwater activities is  not tracked separately. As a result, the financial information in this report is  an estimate of the minimum amount of funds agencies provided for  freshwater programs. In addition, although we requested program-level  financial information, we opted to present this information at the  agency-level because agencies’ definitions of freshwater programs vary. We  conducted follow-up interviews with respondents to confirm the  information and to clarify the information they provided, if necessary. A  more detailed description of our scope and methodology is presented in  appendix I. We performed our work between March 2004 and January 2005,  in accordance with generally accepted government auditing standards.
subsections: section_title: Background
paragraphs: The federal government supports multiple freshwater programs in the  United States and abroad. Although agencies vary in how they describe  their freshwater programs (activities, projects, or initiatives), the following  terms generally describe the freshwater efforts covered in this review:  Desalination—Activities and/or infrastructure related to the process of  removing salts from saline water to provide freshwater.
Drinking water supply—Activities and/or infrastructure designed to  improve access to and quality and availability of clean drinking water.
Flood control—Activities related to dredging, hydrologic forecasting,  and the construction, operation, and maintenance of infrastructure  designed to reduce flood damage.
Irrigation—Activities and/or infrastructure related to the diversion,  distribution, delivery, and drainage of water for agricultural purposes.
Navigation—Activities and/or infrastructure related to dredging and the  construction, operation, and maintenance of infrastructure (e.g., locks,  channels, and dams), primarily for river-based transportation.
Wastewater treatment—Activities and/or infrastructure designed to  manage and treat storm water and domestic and/or industrial  wastewater.
Water dispute management—Adjudication, litigation, and negotiation  activities to prevent or resolve water-related disputes, including water  settlement payments.
Water conservation—Activities and/or infrastructure designed to  reclaim, recycle, and/or reuse potable or nonpotable water.
Watershed protection, restoration, and management (watershed  management)—Activities and/or infrastructure related to nonpoint  source pollution prevention, wetlands restoration, and land-based  activities related to source water protection and coastal zone  management.
Federal agencies provide financial support for freshwater programs  through direct federal spending and grant, loan, and loan guarantee  programs. For the purposes of this report, direct federal spending is a  general term used to describe, among other things, work performed by  federal employees or through contracts with private and nongovernmental  entities on the federal government’s behalf. For example, direct federal  spending includes the financial support spent by federal agencies for,  among other things, the construction of reservoirs for flood control and  irrigation. Grants, loans, and loan guarantees are different types of  financial assistance programs provided by federal agencies to help  communities with projects, such as construction of water and wastewater  treatment facilities. In addition to providing financial support on the direct  costs of freshwater programs, such as capital construction and operations  and maintenance costs, agencies also provide funds for technical  assistance and research and development efforts.
Agencies rely on several sources of funding—including annual  appropriations from the general fund and from dedicated funding sources,  such as trust funds—to provide financial support for these programs.  Agencies obligate these funds for multiple purposes as they implement  their programs. Obligations represent amounts for orders placed, contracts  awarded, services received, and similar transactions during a given period  that will require payments during the same or a future period. Obligations  differ from expenditures in that an expenditure is the issuance of a check,  disbursement of cash, or electronic transfer of funds made to liquidate an  obligation. In addition, in some circumstances expenditures fulfilling an  obligation may occur during subsequent years. Consequently, obligations  provide the best estimate of what an agency plans to spend during a fiscal  year.
The extent to which agencies track their freshwater efforts vary. Agencies  tend to track the financial support they provide to large freshwater  programs, such as EPA’s Drinking Water State Revolving Fund. Some  programs, such as Agriculture’s Conservation Reserve Program, serve  multiple purposes and specific program components, such as irrigation  activities, are not specifically tracked. Similarly, freshwater projects (e.g., a  dam) can serve multiple purposes, providing benefits such as water  storage, flood control, and generation of hydroelectric power. The financial  support provided for the overall project cost is generally available, but the  costs for specific components of the project are not readily available. In  addition, definitions of freshwater programs can vary depending on the  agency’s role. An agency that is responsible for maintaining portions of the  nation’s waterways may include lock infrastructure and waterway  operations and maintenance activities in its navigation program; however,  other agencies, which are responsible for research and development of  freshwater resources, may include stream flow and sedimentation research  within their navigation programs. Because of these differences, agencies  may not be tracking their freshwater expenditures consistently across  agencies. As such, financial information reported by the agencies on the  federal government’s financial support of freshwater programs in the  United States and abroad is an estimate of the minimum amount of funds  provided for these efforts.
section_title: Federal Agencies Provided an Estimated $49 Billion for Domestic Freshwater Programs during Fiscal Years 2000 through 2004
paragraphs: Of the 27 agencies that provided about $49 billion in federal financial  support specifically for freshwater programs in the United States during  fiscal years 2000 through 2004, 3 agencies accounted for over 70 percent of  the total. EPA provided about 31 percent of the total support, the Corps  accounted for about 26 percent of the total, and Agriculture’s Rural Utilities  Service accounted for about 16 percent of the total. See table 1 for more  information on the federal financial support provided for domestic  freshwater programs.
Each of the agency’s financial support of freshwater programs generally  reflects the nature of its mission. EPA—as the agency responsible for  protecting the nation’s waters through enforcing clean water and safe  drinking water laws, providing support for municipal wastewater treatment  plants, and protecting watersheds and sources of drinking water—provides  substantial financial support for freshwater programs. On the other hand,  the Department of Health and Human Services’ (Health) Administration of  Children and Families—an agency responsible for federal programs that  seek to promote economic and social well-being—administers a grant  program dedicated to helping rural, low-income communities with their  water and wastewater systems and provides a relatively small amount of  financial support. In addition, agencies, such as Agriculture’s Rural Utilities  Service, the Department of Commerce’s (Commerce) Economic  Development Administration, Health’s Indian Health Service, the  Department of Housing and Urban Development’s (Housing) Office of  Community Planning and Development, and EPA, that assist communities  with the development of drinking water supply and wastewater treatment  facilities provide far more financial support than agencies, such as  Agriculture’s Cooperative State Research, Education, and Extension  Service and Defense’s Army Material Command and Office of Naval  Research, that primarily support research and development efforts.
Agencies generally receive annual appropriations from the general fund to  support their domestic freshwater programs. In addition to annual  appropriations, 4 agencies—Agriculture’s Rural Utilities Service, the Corps,  Defense’s Office of Naval Research, and the Appalachian Regional  Commission—received funds from supplemental appropriations. The  Department of Transportation’s (Transportation) Federal Highway  Administration and Saint Lawrence Seaway Development Corporation  received the majority of their annual budgets from dedicated funding  sources available subject to appropriations (the Highway Trust Fund and  the Harbor Maintenance Trust Fund, respectively). In addition, 4 other  agencies—Agriculture’s Farm Service Agency and Natural Resources  Conservation Service, the Corps, and Interior’s  Reclamation—supplemented their annual budgets with dedicated funding  sources available subject to appropriation. The Agriculture agencies  received funds from the Commodity Credit Corporation, while the Corps  and Interior’s Reclamation received funding from trust funds. Finally,  certain agencies, including Interior’s Reclamation and Fish and Wildlife  Service and Agriculture’s Rural Utilities Service, received funds from  dedicated funding sources available without further appropriation. For  example, Interior’s Reclamation received funds from the Lower Colorado  River Basin Development Fund to finance the operation and maintenance  of freshwater infrastructure in the Colorado River Basin for, among other  things, drinking water supply, flood control, and irrigation efforts.
Domestic drinking water supply and wastewater treatment programs were  supported by 18 and 16 agencies, respectively. Agriculture’s Rural Utilities  Service, Commerce’s Economic Development Administration, Health’s  Indian Health Service, Housing’s Office of Community Planning and  Development, and EPA primarily supported activities related to the  development of drinking water supply and wastewater treatment  infrastructure, and some of the other agencies mostly provided technical  assistance and/or research and development assistance, such as water  quality and water availability research. Sixteen agencies supported a  variety of watershed management programs. While 7 agencies provided  financial support for navigation programs, the Corps and Transportation’s  Saint Lawrence Seaway Development Corporation provided the majority of  the support for, among other things, operations and maintenance of the  nation’s waterways. See table 2 for more information on the domestic  freshwater programs these agencies supported.
Agencies used several different funding mechanisms to provide financial  support for domestic freshwater programs. Twenty of the 27 agencies  reported that they used direct federal spending to provide financial support  for freshwater programs. For the purposes of our review, we define direct  federal spending to include (1) work carried out by federal employees,  contractors, and private and nongovernmental organization sectors for the  federal government; (2) the federal government’s portion of federal  cost-share programs; and (3) funds provided from one agency to another  agency to conduct work. Thirteen agencies used grant programs, and 2  agencies each used loan and loan guarantee programs. Many agencies used  a combination of funding mechanisms to provide financial support for  freshwater programs. See table 3 for more information on funding  mechanisms used by agencies to provide financial support for freshwater  programs in the United States.
Grant programs and direct federal spending provided over $22 billion and  about $22 billion, respectively, for domestic freshwater programs. Loan  programs provided over $4 billion, and loan guarantee programs provided  over $90 million in initial obligations. Initial obligations are the amount  agencies obligated for the subsidy cost when a loan guarantee was made.  They do not include subsequent reestimates. See figure 1 for the financial  support provided by each funding mechanism.
Direct federal spending ($21.8 billion)
Grant programs ($22.5 billion)
The $49 billion for domestic freshwater programs includes funding  provided from one agency to another to conduct freshwater activities in the  United States. For example, the Corps received financial support from EPA  to conduct watershed management activities. We included funding for this  effort in the financial information reported by EPA. See table 4 for  examples of agencies that performed work on freshwater activities in the  United States using financial support provided to them by other agencies.
We also identified domestic programs that may provide financial support  for freshwater activities, but are not included in the $49 billion because  supporting freshwater activities is not the programs’ primary purpose and  activity-level data is not readily available. For example, Housing’s Office of  Community Planning and Development administers a loan guarantee  program that may provide financial support for water infrastructure  projects, but aggregate information on the use of loan guarantee authority  for particular categories of activities is not readily available. Consequently,  financial support provided by these types of programs is not included in  table 1. Other agencies also have these types of programs that may support  freshwater-related activities: Agriculture’s Farm Service Agency, Forest  Service, and Rural Utilities Service; Commerce’s Economic Development  Administration; Interior’s Fish and Wildlife Service; the Appalachian  Regional Commission; and EPA. Furthermore, while these 27 agencies  provided the majority of the federal financial support for freshwater  programs in the United States, other agencies may also provide financial  support for these types of programs. Appendix II provides information on  some other agencies and programs that can provide financial support for  freshwater-related activities. These agencies provide financial assistance  primarily for specific regions of the United States and/or support a variety  of programs, including freshwater-related activities.
In the domestic support for freshwater programs, we also identified the  United States’ financial contributions to three binational  commissions—Border Environment Cooperation Commission,  International Boundary and Water Commission, and International Joint  Commission. These commissions support a variety of projects on both  sides of the U.S. borders with Canada and Mexico. Typically, these  commissions coordinate their efforts with EPA and/or State and are able to  track how U.S. contributions are used to support their freshwater  activities. Together, the three commissions used about $175 million in U.S.  contributions to support a number of freshwater projects during fiscal  years 2000 through 2004. For the purposes of our review, we include  information on U.S. contributions to these commissions in the same  section as the information for domestic freshwater programs because these  projects are joint efforts among the United States, Canada, and Mexico  along the shared borders; however, information on funding spent solely in  the United States by the commissions is not readily available. Table 5  presents information on total U.S. contributions to these commissions for  freshwater projects. See appendix II for more information on these  commissions.
section_title: Federal Agencies Provided an Estimated $3 Billion for Freshwater Programs Abroad during Fiscal Years 2000 through 2004
paragraphs: Of the about $3 billion of U.S. financial support provided internationally for  freshwater programs during fiscal years 2000 through 2004, an estimated   $2 billion was spent throughout most of the world, and more recently  another $1 billion supported freshwater projects in Afghanistan and Iraq. In  addition to the financial assistance provided directly by federal agencies  for freshwater programs abroad, the United States also indirectly supports  these programs through its contributions to numerous international  organizations, such as the World Bank and the United Nations.
subsections: section_title: Eight Federal Agencies Provided Financial Support for Programs throughout the World
paragraphs: Eight federal agencies obligated an estimated $2 billion during fiscal years  2000 through 2004 for freshwater activities abroad, excluding Afghanistan  and Iraq. USAID accounted for over 90 percent of the $2 billion. Interior’s  Fish and Wildlife Service provided about 6 percent; Agriculture’s Foreign  Agricultural Service and the U.S. Trade and Development Agency (an  independent federal agency) each accounted for around 1 percent. The  remaining 4 agencies (State, the Corps, the African Development  Foundation, and the National Science Foundation) together provided about  1 percent of the support. See table 6 for information on the federal financial  support provided for freshwater programs abroad, excluding aid provided  to Afghanistan and Iraq.
For international support on freshwater programs abroad, agencies  generally receive annual appropriations from the general fund to support  their freshwater programs. Some freshwater programs, such as those at  Interior’s Fish and Wildlife Service, are also supported by permanent or  dedicated funding sources, which remain available without further  appropriation. Agriculture’s Foreign Agricultural Service receives funds for  its freshwater programs from the Commodity Credit Corporation (a  dedicated funding source at Agriculture subject to congressional  appropriation).
Seven of the 8 agencies reported that they provided financial support for  wastewater treatment and watershed management programs abroad. In  addition, 6 agencies each provided financial support for drinking water  supply and irrigation programs. See table 7 for information on the  freshwater programs supported by federal agencies abroad.
About 99 percent of the estimated $2 billion in federal financial support for  freshwater programs abroad was delivered through grant programs  administered by 7 agencies. The Corps was the only agency that did not  have a grant program to support freshwater programs abroad. Agriculture’s  Foreign Agricultural Service, the Corps, State, and USAID provided a  relatively small amount of financial support (about $15 million total)  through direct federal spending. Additionally, USAID obligated $4 million in  loan guarantees for water supply and wastewater treatment projects  through its Development Credit Authority program to cover up to   50 percent of the risk in lending.
Some of the $2 billion for freshwater programs abroad includes funding  provided from one agency to another to conduct freshwater projects in  foreign countries. For example, Interior’s Reclamation received funds from  State to conduct desalination activities. We included funding for this effort  in the financial information reported by State. See table 8 for examples of  agencies that performed work on freshwater activities abroad using  financial support provided to them by other agencies.
Appendix III provides information on these and other agencies and  programs that can also provide financial support for freshwater activities  abroad.
section_title: Financial Support for Afghanistan and Iraq
paragraphs: For Afghanistan and Iraq, USAID and Defense provided about $1 billion  during fiscal years 2002 through 2004 to support the reconstruction and  rehabilitation of freshwater infrastructure in these countries. For the  purposes of our review, we report financial support for freshwater projects  in Afghanistan and Iraq separately from the $2 billion total in foreign aid  because these funds were primarily made available during fiscal year 2004.  USAID provided financial support through grants and contracts and by  transferring funds to the Corps to carry out work on water supply,  wastewater treatment, irrigation, and watershed projects in Afghanistan  and Iraq. USAID received funds from the Emergency Supplemental  Appropriation for Defense and for the Reconstruction of Iraq and  Afghanistan for Fiscal Year 2004 to support, among other activities,  freshwater projects in those two countries. Within the Office of the  Secretary of Defense, (1) the Defense Security Cooperation Agency’s  Humanitarian Assistance Program supports, among other things, water  infrastructure projects overseas and (2) the Army’s Commander’s  Emergency Response Program is designed to respond to urgent  humanitarian relief and reconstruction requirements at the local level in  Afghanistan and Iraq. Also within Defense, the Project and Contracting  Office awarded and continues to manage various contracts to support,  among other things, the construction of rural water systems and the  rehabilitation of drinking water supply facilities in major cities in Iraq.  Table 9 presents information on financial support provided by USAID and  Defense for freshwater projects in Afghanistan and Iraq.
section_title: The United States Also Provided Financial Contributions to Various International Organizations That Support Freshwater Programs
paragraphs: In addition to providing financial support directly through federal agencies  for freshwater programs abroad, the United States also indirectly supports  these programs through its contributions to numerous international  organizations (e.g., the United Nations and the World Bank). In most cases,  the United States makes contributions to the general budgets of these  organizations and not to a specific project or program. In addition, these  organizations usually combine U.S. contributions with other sources of  funds, including contributions from other countries, to fund their  freshwater programs. As a result, it is difficult to determine what portion of  U.S. contributions to international organizations is used to support  freshwater programs.
The United States contributed to the general budgets of a number of  multilateral development banks and financial institutions that support  freshwater projects around the world, and some portion of these  contributions was used to support freshwater efforts worldwide. Using  funds contributed by the United States and other countries or borrowed  from world capital markets, multilateral development banks finance  economic and social development programs around the world. Together,  these autonomous institutions are the largest single source of  developmental assistance for developing countries. The United States is a  member of, and has made financial contributions to, five multilateral  development banks that support freshwater projects around the world.  These multilateral development banks include the African Development  Bank Group, the Asian Development Bank, the European Bank for  Reconstruction and Development, the Inter-American Development Bank,  and the World Bank Group. The United States also contributed to other  international financial institutions—including the Global Environment  Facility, the International Fund for Agricultural Development, and the  North American Development Bank—that also support freshwater projects  abroad. See table 10 for figures on total contributions the United States  made to selected multilateral development banks and financial institutions.  Some portion of these contributions supported freshwater projects abroad.
The United States also contributed to the general budgets of a number of  international organizations that support freshwater projects around the  world, and some portion of these contributions was used to support  freshwater efforts. Of these organizations, the United States contributed  the most financial support to the United Nations. In addition to assisting  with peacekeeping efforts, the United Nations provides funds for  humanitarian, environmental, and development programs that support,  among other things, water resources management efforts around the  world. Table 11 presents figures on contributions the United States made to  selected international organizations. Some portion of these contributions  supported freshwater projects abroad.
section_title: Agency Comments
paragraphs: We provided the Departments of Agriculture, Commerce, Defense, Energy,  Health and Human Services, Housing and Urban Development, the Interior,  Transportation, and State and independent agencies, including the African  Development Foundation, the Appalachian Regional Commission, EPA, the  National Science Foundation, the Small Business Administration, USAID,  and the U.S. Trade and Development Agency, with a draft of this report for  review and comment. Three of these agencies—Interior, Health and Human  Services, and USAID—provided us with written comments that are  included in appendixes IV through VI. The 3 agencies agreed with the  report and provided us with technical comments, which we have included  as appropriate. The other 13 agencies provided us with technical comments  orally or did not provide us with any comments. We have made changes in  response to the technical comments throughout the report, as appropriate.
We will send copies of this report to interested congressional committees;  the Secretaries of Agriculture, Commerce, Defense, Energy, Health and  Human Services, Housing and Urban Development, the Interior,  Transportation, and State; the Administrators of EPA, Small Business  Administration, and USAID; the Directors of the National Science  Foundation, Office of Management and Budget, and U.S. Trade and  Development Agency; the President of the African Development  Foundation; the Federal Co-Chair of the Appalachian Regional  Commission; and other interested parties. We will also make copies  available to others upon request. In addition, the report will be available at  no charge on the GAO Web site at http://www.gao.gov.
If you or your staff have any questions, please call me or Edward Zadjura at  (202) 512-3841. Key contributors to this report are listed in appendix VII.
section_title: Scope and Methodology
paragraphs: The objectives of our review were to determine for fiscal years 2000  through 2004 how much financial support federal agencies provided for  freshwater programs in the United States and abroad.
To identify the agencies that support freshwater programs in the United  States and abroad, we reviewed the Catalog of Federal Domestic  Assistance and reports published by GAO, the Congressional Research  Service, the United Nations, and the National Research Council of the  National Academies. We also interviewed water and natural resources  experts at the Congressional Research Service. For the purpose of our  review, we examined freshwater programs that support desalination;  drinking water supply; flood control; irrigation; navigation (primarily for  river-based transportation); wastewater treatment; water conservation;  water dispute management; and watershed protection, restoration, and  management activities. We identified numerous agencies that support at  least one of these freshwater programs. After conducting additional  background research and interviews with officials at these agencies, we  narrowed our focus to 32 agencies. These agencies received congressional  appropriations during each of the fiscal years from 2000 through 2004 and,  to some extent, tracked the amount of financial support they provided for  freshwater programs. Together, these agencies accounted for the majority  of the federal financial support for freshwater programs in the United  States and abroad during fiscal years 2000 through 2004. These agencies  include the following:  Department of Agriculture (Agriculture): Agricultural Research  Service; Cooperative State Research, Education, and Extension Service;  Economic Research Service; Farm Service Agency; Foreign Agricultural  Service; Forest Service; Natural Resources Conservation Service; Rural  Utilities Service;  Department of Commerce (Commerce): Economic Development  Administration, National Oceanic and Atmospheric Administration;  Department of Defense (Defense): Army Corps of Engineers (Corps),  Army Material Command, Office of Naval Research;  Department of Energy (Energy);  Department of Health and Human Services (Health): Administration  for Children and Families, Indian Health Service;  Department of Housing and Urban Development (Housing): Office of  Community Planning and Development;  Department of the Interior (Interior): Bureau of Indian Affairs, Bureau  of Land Management, Bureau of Reclamation (Reclamation), Fish and  Wildlife Service, National Park Service, U.S. Geological Survey;  Department of State (State);  Department of Transportation (Transportation): Federal Highway  Administration, Saint Lawrence Seaway Development Corporation; and  Independent agencies: African Development Foundation, Appalachian  Regional Commission, Environmental Protection Agency (EPA),  National Science Foundation, U.S. Agency for International  Development (USAID), U.S. Trade and Development Agency.
To determine the amount of financial support these agencies provided for  freshwater programs, we used a questionnaire to gather information on  agencies’ freshwater programs, including funds provided on an annual  basis to support these programs. Before distributing the questionnaire, we  had staff from the Resources, Science, and Industry and American Law  Divisions of the Congressional Research Service review the draft  questionnaire, and we included their comments, accordingly. In addition,  we pretested the questionnaire with an official from the Corps and  incorporated her comments, as appropriate. We sent the questionnaires,  along with a cover letter, to respondents and requested that agencies return  the completed questionnaire within 4 weeks. All agencies returned their  questionnaires. We conducted follow-up interviews with respondents to  confirm the information and to clarify the information, if necessary.
In our questionnaire, we requested financial information on the direct costs  of agencies’ freshwater programs, such as capital construction and  operations and maintenance costs of freshwater infrastructure. We also  requested information on the amount of financial support provided for  technical assistance and research and development efforts related to  freshwater programs. We requested information on freshwater programs  that agencies typically fund during a year and excluding atypical funding,  such as financial support for freshwater projects in response to natural  disasters. We obtained and reported on financial support for freshwater  projects in Afghanistan and Iraq separately from the total foreign  assistance because these funds were provided in recent years.
We requested this information in the form of obligations because  obligations provide a good estimate of what an agency plans to spend  during a fiscal year. Additionally, financial information in the form of  obligations are the best measure for comparing the amount of financial  support provided from year to year over a period of time. Because we  reviewed a fairly recent period of time during which inflation was minimal,  we reported the figures in current dollars. For loan guarantee programs, we  requested that the agency provide the amount they initially obligated the  year the loan was guaranteed to cover potential defaults, rather than  annual reestimates of these amounts.
In cases where agencies do not track financial information in the form of  obligations, we requested that senior agency officials provide the best  available proxy for obligations. Some officials said that obligations are  comparable to their appropriation or expenditure figures. Other officials  stated that their agency collects information on actual disbursements or  actual grant approval amounts. Agencies for which we do not report  obligations include Agriculture’s Farm Service Agency and Forest Service,  Housing’s Office of Community Planning and Development,  Transportation’s Saint Lawrence Seaway Development Corporation, and  the Appalachian Regional Commission—see notes to table 1 for more information on these agencies’ financial information. We did not  independently assess the reliability of the financial information provided by  agency officials because obligations are agency expectations for  expenditures and there are no associated transactions to track.
Although we requested program-level financial information, we opted to  present this information at the agency-level because agencies’ definitions  of freshwater programs vary. However, we collected the program-level  financial information to ensure that agency officials reported financial  support for freshwater programs consistently across agencies. As part of  this effort, we confirmed with each agency that for each of the programs  listed in the questionnaire, the agency only provided financial information  on the freshwater portion of the program. In addition to programs that  specifically supported freshwater activities, we also requested information  on other programs that may provide funding for these activities. We did not  include financial support from these programs in the agency totals because  supporting freshwater activities is not their primary purpose and activity  level data is not readily available. Consequently, the financial information  we reported is an estimate of the minimum amount of financial support  provided by the agencies.
In addition to the agencies that specifically supported freshwater  programs, we identified and obtained information on several binational  commissions, international organizations, and multilateral development  banks to which the United States made financial contributions and which  support freshwater programs along U.S. borders or abroad. To identify how  U.S. contributions to binational commissions were used to support  freshwater programs along U.S. borders, we obtained financial information  from officials at State and EPA and representatives from the commissions.  To identify the annual amount of the United States’ financial contributions  to multilateral development banks and other international organizations,  we obtained financial information from officials at State and the  Department of the Treasury. When necessary, we corroborated this  information with support from other sources, including annual reports to  Congress on U.S. contributions to international organizations.
We conducted our review from March 2004 through January 2005 in  accordance with generally accepted government auditing standards.
section_title: Federal Financial Support for Freshwater Programs in the United States and along U.S. Borders
paragraphs: This appendix discusses federal financial support of freshwater programs  in the United States and along U.S. borders in three parts. First, we provide  a general overview on the agencies responsible for the majority of the  federal financial support for freshwater programs in the United States,  along with the total amount of financial support provided for freshwater  programs during fiscal years 2000 through 2004. Second, we briefly  summarize the information on some other agencies that can also provide  financial support to domestic freshwater programs. Third, we provide  information on (1) binational commissions that used U.S. financial  contributions for freshwater projects along the U.S. borders with Canada  and Mexico and (2) total U.S. financial contributions to these commissions  for their freshwater programs during fiscal years 2000 through 2004.
subsections: section_title: Federal Agencies
paragraphs: The following agencies provide the majority of the federal government’s  financial support specifically for freshwater programs in the United States.  These programs, as described by agency officials, documents, and reports,  are discussed below.
subsections: section_title: Department of Agriculture: $10.4 Billion
paragraphs: The mission of the Department of Agriculture is to provide leadership on  food, agriculture, and natural resources issues on the basis of sound public  policy, the best available science, and efficient management. The  department conducts work under a variety of mission areas, including farm  services, natural resources and the environment, research and education,  and rural development. The agency provides financial support for  freshwater programs primarily for the construction of drinking water and  wastewater facilities, watershed and wetland management, and freshwater- related research.
subsections: section_title: Agricultural Research Service: $523.8 Million
paragraphs: The Agricultural Research Service is the department’s primary in-house  scientific research agency. The agency conducts research to develop and  transfer solutions to address agricultural problems to enhance natural  resources, such as protecting and sustaining freshwater resources. The  agency’s authority to conduct these efforts primarily falls under the  Department of Agriculture Organic Act of 1862 and the Agricultural  Research Act of 1935. Freshwater programs include technological  improvements in irrigation, rural and urban water recycling and reuse,  nonpoint source pollution prevention, stream restoration, and flood control  structures. The agency also receives financial support from other federal  agencies—such as Commerce’s National Oceanic and Atmospheric  Administration and the Corps—to support domestic freshwater programs,  including watershed management, irrigation, and water conservation.  Additionally, the agency receives funds from State to conduct freshwater  activities abroad, such as irrigation systems in Pakistan and Mexico.
section_title: Cooperative State Research, Education, and Extension Service: $172.9 Million
paragraphs: The Cooperative State Research, Education, and Extension Service was  created in 1994 through the USDA Reorganization Act. The agency provides  financial support—primarily through grants to universities, nonprofit  associations, private industry, and other groups—for state and local  research, education, and outreach activities. The agency conducts these  activities primarily through the Hatch Act of 1887, as amended, the  National Agricultural Research, Extension, and Teaching Policy Act of  1977, and section 406 of the Agricultural Research, Extension, and  Education Reform Act of 1998. For example, through the Hatch Act, the  agency provides block grants for agricultural research on an annual basis  primarily to state land grant institutions. These funds are distributed  according to a statutory formula. Although the scope of the agricultural  research conducted under the Hatch Act is broad, portions of the financial  support are directed toward research projects on freshwater resources.
section_title: Economic Research Service: $4.7 Million
paragraphs: The Economic Research Service is Agriculture’s main source of economic  information and research. Regarding freshwater resources, the agency  primarily provides financial support for research and development  programs. For example, the agency is currently conducting research on the  impact of agriculture on water quality by examining (1) the influence of  economic, environmental, and institutional factors affecting adoption of  water conservation management practices and irrigation technologies;   (2) the economics of alternative public policy mechanisms to encourage  agricultural water conservation and improved water quality; and (3) the  availability of water infrastructure and policy mechanisms to facilitate  water reallocations and the implications for irrigated agriculture and  resource costs. According to a senior agency official, these research  activities are generally performed under the Agricultural Marketing Act of  1946. In addition to conducting its own freshwater programs, the agency  receives funds from Agriculture’s Foreign Agricultural Service to support  freshwater research and development efforts to foreign countries, such as  a project to support hydrological modeling of river systems in North China.
section_title: Farm Service Agency: $24.6 Million
paragraphs: The Farm Service Agency was formed after a departmental reorganization  in 1994 and incorporated programs from several agencies. One of the  agency’s primary missions is to help farmers conserve both land and water  resources. The agency supports several multipurpose programs—such as  the Debt for Nature Program and the Conservation Reserve Program—that  may also benefit freshwater resources, but financial information  specifically for freshwater efforts is not readily available. For example,  through the Conservation Reserve Program, landowners receive annual  rental payments and other payments for implementing long-term  conservation practices on their land, for among other things, management  of wetlands. The Farmable Wetlands Program, which began as a pilot in six  states in fiscal year 2001 and is part of the Conservation Reserve Program,  provides payments to farmers who voluntarily restore farmable wetlands.  The program expanded nationwide in fiscal year 2002 when it was  authorized by the Farm Security and Rural Investment Act of 2002. Funding  for this program comes from the Commodity Credit Corporation—a  government-owned and -operated corporation established in 1933 to  stabilize, support, and protect farm income and prices.
section_title: Forest Service: $291.5 Million
paragraphs: Among its goals, the Forest Service promotes ecosystem health and  conservation in part by improving and protecting watershed conditions to  provide the water quality and quantity necessary to support ecological  functions. In the United States, forests cover approximately one-third of  the land area from which about 66 percent of freshwater originates. Under  the Organic Act of 1897, one of the primary reasons for establishing  national forests was to maintain and restore watersheds to protect  freshwater resources. The agency fulfills these efforts by supporting  programs for watershed management activities, such as conducting water  quality monitoring and watershed restoration. The agency also secures  water rights to protect and use freshwater on Forest Service lands.
section_title: Natural Resources Conservation Service: $1.9 Billion
paragraphs: The mission of the Natural Resources Conservation Service is to provide  leadership in a partnership effort to help landowners conserve, maintain,  and improve natural resources, including freshwater. As a part of these  efforts, the agency supports watershed management, flood control, and  water conservation programs. The agency provides financial support for  freshwater activities through a variety of programs, including Watershed  Protection and Flood Prevention Operations and the Watershed  Rehabilitation Program. Most financial support for freshwater activities  reported by the agency was through the Wetlands Reserve Program, which  was mandated by the Food Security Act of 1985 and reauthorized by the  Farm Security and Rural Investment Act of 2002. The program is voluntary  and offers landowners financial and technical assistance for the  restoration, protection, and enhancement of wetlands. To be eligible for the  program, a landowner must have owned the land for at least 12 months and  the wetland must be restorable and suitable for wildlife benefits. As with  the Farmable Wetlands Program administered by the Farm Service Agency,  the source of funds for the program is through the Commodity Credit  Corporation.
section_title: Rural Utilities Service: $7.6 Billion
paragraphs: Part of the mission of the Rural Utilities Service is to improve the quality of  life in rural communities by administering drinking water supply and  wastewater treatment programs. The agency provides the most financial  support for freshwater programs of any Agriculture agency. The agency  primarily uses grant and loan programs to provide financial support for  developing water systems in rural areas and reducing water costs for rural  users. The main authority to administer these programs is through the  Consolidated Farm and Rural Development Act of 1961. Municipalities,  counties, special-purpose districts, Indian tribes, and nonprofit  organizations are eligible for the programs. In addition, the agency provides  technical assistance and training grants to nonprofit organizations to assist  rural communities with drinking water and wastewater issues.  Furthermore, the agency also administers a loan guarantee program for  drinking water supply and wastewater treatment loans it provides. In  addition to executing its own grants during fiscal years 2000 through 2004,  the agency, under a memorandum of understanding, administered grants  funded by Commerce’s Economic Development Administration and the  Appalachian Regional Commission for drinking water supply and  wastewater treatment projects.
section_title: Department of Commerce: $539.8 Million
paragraphs: The Department of Commerce’s strategic goals include, among other  things, encouraging economic growth that benefits Americans and  observing, protecting, and managing the Earth’s resources to promote  environmental stewardship. The department’s freshwater programs include  water infrastructure and water availability activities.
subsections: section_title: Economic Development Administration: $337.5 Million
paragraphs: The Economic Development Administration, established by the Public  Works and Economic Development Act of 1965, as amended, leads the  federal government’s economic development efforts by facilitating growth  in America. Through its Public Works and Economic Adjustment  Assistance Programs, the agency provides grants to communities and  entities in regions experiencing economic decline and distress. These  grants are used for, among other things, revitalizing, expanding, and  upgrading the physical infrastructure, including water and sewer systems.  Under the Partnership Planning Program, the agency also provides grants  for planning and technical assistance. The agency can track the majority of  its freshwater activities using standard industrial codes, such as water  system and water treatment. The agency also supports other programs that  can provide funds for freshwater-related activities. In addition to executing  its own grants during fiscal years 2000 through 2004, the agency, under a  memorandum of agreement, administered grants funded by the  Appalachian Regional Commission and Defense’s Office of Economic  Adjustment to carry out freshwater infrastructure activities.
section_title: National Oceanic and Atmospheric Administration: $202.3 Million
paragraphs: Among its missions, the National Oceanic and Atmospheric Administration  researches and gathers data related to changes in the weather and  availability of water. Several offices within the agency provide financial  support for freshwater activities. The National Weather Service— authorized under the Organic Act of October 1, 1890, as amended, and the  Flood Control Act of 1938, as amended—provided the largest portion of the  agency’s budget for freshwater programs. Within its hydrology program,  the National Weather Service supports watershed management and flood  control activities, such as forecasting water availability activities on rivers,  lakes, and streams and inland water research. In addition, the Office of  Oceanic and Atmospheric Research provides financial support for drinking  water supply, water conservation, watershed management, and navigation  in the Great Lakes region. These activities are carried out under various  legal authorities, such as the National Climate Program Act (15 U.S.C. §§  2901-2908) and the Great Lakes Water Quality Agreement of 1978, as  amended. Other offices within the National Oceanic and Atmospheric  Administration also provide financial support for, among other things,  fisheries and aquatic species management and freshwater-related activities  in coastal, estuarine, and marine environments. During fiscal years 2000  through 2004, the agency performed work in other countries, but funding  for these efforts typically originated with State and USAID.
section_title: Department of Defense: $12.9 Billion
paragraphs: The Department of Defense provides services for military and civilian  purposes. The Corps provides financial support for the vast majority of the  department’s freshwater programs for civilians through its Civil Works  program. In addition, the Army and Navy provide financial support for  science and technology research on drinking water supply, water  conservation, wastewater treatment, and desalination. Some of these  technologies have the potential to be transitioned from a military function  to benefit civilians.
subsections: section_title: Army Corps of Engineers: $12.9 Billion
paragraphs: The Army Corps of Engineers provides engineering services for military  and civilian purposes. In addition to designing and managing construction  of military facilities, the Corps plans, designs, builds, and operates water  resources and other civil works projects through its Civil Works program.  The Corps carries out water infrastructure and environmental management  and restoration projects under various legal authorities, including  numerous river and harbors acts, flood control acts, and Water Resources  Development Acts. Activities supported include navigation, flood  protection, dam and reservoir projects, and drinking water and wastewater  projects. The Corps’ annual appropriations are primarily directed to  specific projects. These appropriations are received through Energy and  Water Development appropriation acts rather than the Department of  Defense appropriations acts. In addition to annual appropriations from the  general fund, the Corps receives appropriations from dedicated funding  sources, such as the Harbor Maintenance Trust Fund and the Inland  Waterway Trust Fund, which receive revenue through receipts of,  respectively, a tax on port use and a tax on fuel used by vessels in  commercial waterway transportation. The Corps also performs domestic  work funded by agencies, such as EPA, Agriculture, and Interior.
section_title: Army Material Command: $20.4 Million
paragraphs: The Army Material Command conducts research related to, among other  things, the logistics of providing water for combat operations on land. The  agency performs in-house research, manages contract efforts, and supports  other military and government agencies with drinking water treatment,  monitoring, storage, and distribution; wastewater treatment; desalination;  and water conservation programs. Within the agency, the Army Tank- Automotive Research, Development and Engineering Center researches,  develops, engineers, and integrates advanced technology into ground  operations. For example, the Water Purification and Recovery Technology  program seeks to reduce the logistical burden of providing water for  ground troops. According to Army officials, the Army carries out these  activities under its general mission to provide and equip combat operations  on land.
section_title: Office of Naval Research: $16.8 Million
paragraphs: The Office of Naval Research coordinates, executes, and promotes the  science and technology programs of the U.S. Navy and Marine Corps. The  agency provides financial support through direct federal spending and  grant programs for drinking water supply, wastewater treatment, and  desalination projects. In addition to private contractors, the agency  collaborates with schools, universities, government laboratories, and  nonprofit organizations to execute its science and technology programs.  More recently in fiscal year 2003, in response to appropriations committee  direction, the Office of Naval Research began funding the Expeditionary  Unit Water Purification project, which will develop prototype  demonstrators to produce drinking water from brackish or saline water.  The agency leads this effort, which involves other federal agencies, such as  the Army, Interior’s Reclamation, and the Department of Energy. The Office  of Naval Research conducts its research efforts under 10 U.S.C. §§ 5022- 5023.
section_title: Other Defense Programs
paragraphs: The Office of the Secretary of Defense administers programs that can  provide financial support for freshwater activities, although that is not the  focus of the programs. For example, the Strategic Environmental Research  and Development Program and the Environmental Security Technology  Certification Program fund research for technologies related to, among  other things, water quality and wastewater treatment. In addition, the  Legacy Program supports watershed rehabilitation and freshwater  conservation efforts, although these efforts are not specifically tracked.
The Office of Economic Adjustment provides technical expertise and  financial support to state and local governments in planning community  adjustments. The agency may acquire the services of Commerce’s  Economic Development Administration to execute grants that implement  plans to convert former military bases to civilian uses. According to a  senior agency official, the agency does not track its implementation  projects by category, some of which could be water infrastructure projects.
section_title: Department of Energy: $17.3 Million
paragraphs: Created by the Department of Energy Organization Act of 1977, Energy’s  mission is to advance the national, economic, and energy security of the  United States; promote scientific and technological innovation in support  of that mission; and ensure the environmental cleanup of the nation’s  nuclear weapons complex. Although freshwater-related issues are not a  primary focus, the department, through grants and direct federal spending,  provides financial support for groundwater cleanup projects and for the  research and development of desalination technologies. As provided for in  the Uranium Mill Tailings Radiation Control Act of 1978, the department  engages in groundwater cleanup and remediation activities at several  former uranium mill sites. The department also provides funding for  alternative clean water supplies, a distillation water treatment plant, and  flood control activities at these sites. In addition, Energy and Interior’s  Reclamation collaborated to produce a national road map in 2003 for the  research and development of desalination and water purification  technologies. The Conference Committee report accompanying the 2004  Energy and Water Development Appropriations Act directed Energy’s  Office of Environmental Management’s Technology Development and  Deployment Program to provide $3 million to support the research and  development of desalination research technologies. Sandia National  Laboratories coordinated these activities for the department.
section_title: Department of Health and Human Services: $484.9 Million
paragraphs: The Department of Health and Human Services is the government’s  principal agency for protecting the health of Americans and providing  essential human services. The department’s freshwater programs primarily  provide financial support for water supply and wastewater treatment  systems.
subsections: section_title: Administration for Children and Families: $30.7 Million
paragraphs: The Administration for Children and Families promotes the economic and  social well-being of families, children, individuals, and communities. As  part of these efforts, the Office of Community Services provides training  and technical assistance grants on a regionwide basis to help small, rural,  low-income communities construct, repair, and rehabilitate water and  wastewater systems. The agency’s Rural Community Facilities  Development Program provides these services, authorized under section  680 of the Community Services Block Grant Act included in the Coats  Human Services Reauthorization Act of 1998. Project activities under this  program include (1) providing training and technical assistance to low- income rural communities to develop expertise needed to establish and  manage water facilities; (2) improving the coordination of federal, state,  and local agencies with rural water and wastewater management; and (3)  educating local, rural community leaders about available federal resources.  According to agency officials, the program enables rural communities to  comply with the requirements of the Clean Water Act and the Safe Drinking  Water Act. Entities eligible for the program include multistate, regional,  private, and nonprofit 501(c)(3) tax-exempt organizations.
section_title: Indian Health Service: $454.2 Million
paragraphs: The Indian Health Service originated in 1955 when Interior transferred  administration of the American Indian and Alaska Native health programs  to the Department of Health and Human Services. However, the Indian  Health Service continues to receive annual appropriations from a  budgetline within Interior’s annual appropriations. The Office of  Environmental Health and Engineering provides technical and financial  support to Indian tribes and Alaska Native communities to promote a  healthy environment through the cooperative development and continuing  operation of safe water, wastewater, and solid waste systems. The  Sanitation Facilities Construction Program is the Indian Health Service’s  primary water infrastructure program. Program services are authorized  under Public Law No. 86-121, Indian Health Care Improvement Act (Pub. L.  No. 94-437), as amended, and the Indian Self-Determination and Education  Assistance Act (Pub. L. No. 93-638), as amended. The Indian Health Service  may provide sanitation facilities directly or in partnership with other  federal agencies or with nonfederal entities. The agency’s nonfederal  project partners could include tribes, tribal-designated housing entities,  tribal enterprises, states, counties, and municipalities. The agency’s federal  partners include Housing’s Office of Native American Programs, Interior’s  Bureau of Indian Affairs and Reclamation, Agriculture’s Rural Utilities  Service Program, and EPA. The agency may also administer projects  funded by those federal agencies to provide sanitation facilities services to  tribes.
section_title: Department of Housing and Urban Development: $2.3 Billion
paragraphs: The Department of Housing and Urban Development supports community  development through partnerships with states and local governments. The  department’s primary tool for providing financing for public improvements  is the Community Development Block Grant program, authorized under  title 1 of the Housing and Community Development Act of 1974, as  amended. The program is managed by (1) the Office of Community  Planning and Development and (2) the Office of Public and Indian Housing.
subsections: section_title: Office of Community Planning and Development: $2.3 Billion
paragraphs: The Office of Community Planning and Development runs the Community  Development Block Grant program for states, entitled cities and counties,  and insular areas (U.S. territories). Grant recipients design and administer  their projects, and the Office of Community Planning and Development  provides project oversight. In order to qualify for a grant, a project must  meet one of the following national objectives: (1) principally benefit low-  and moderate-income families, (2) aid in the prevention or elimination of  slums or blight, or (3) meet other urgent community development needs.  The agency can track some of its freshwater projects on the basis of  general categories, such as water and sewer and flood and drainage  activities. In addition to the Community Development Block Grant  program, local governments may apply for a loan guarantee program,  authorized under section 108 of the Housing and Community Development  Act of 1974, as amended. The local government pledges its future year  Community Development Block Grant funds as security for a federally  guaranteed loan, which provides funds to pursue neighborhood  revitalization projects. Freshwater projects are not specifically tracked in  this program. In addition to executing its own grants during fiscal years  2000 through 2004, the agency, through a memorandum of agreement,  administered grants funded by the Appalachian Regional Commission.
section_title: Office of Public and Indian Housing
paragraphs: The Office of Public and Indian Housing provides programs for Indian  tribes and Alaska Native communities, which are similar to those provided  by the Office of Community Planning and Development. These programs  are the Indian Community Development Block Grant program governed by  title I of the Housing and Community Development Act of 1974, as  amended, and the Indian Housing Block Grant program governed by the  Native American Housing Assistance and Self Determination Act of 1996.  The programs can provide financial support for water infrastructure  projects; however, the freshwater component is not specifically tracked.  Indian Housing Block Grant recipients are eligible to secure financing for  affordable housing activities using a 95 percent federal loan guarantee  under title VI of the Native American Housing Assistance and Self- Determination Act.  Infrastructure projects that support freshwater and  sanitary waste disposal for low- and moderate-income households are  eligible activities under the title VI program.
section_title: Department of the Interior: $6.3 Billion
paragraphs: Part of the mission of the Department of the Interior is to protect natural  areas through scientific research and to foster sound use of land and water  resources. Consequently, the department supports multiple types of  freshwater programs.
subsections: section_title: Bureau of Indian Affairs: $390.7 Million
paragraphs: Specifically related to freshwater resources, the Bureau of Indian Affairs is  responsible for protecting water and land rights and developing and  maintaining infrastructure, such as dams and drinking water facilities, on  55.7 million acres of land held in trust by the United States for Indian tribes  and Alaska Native communities. As part of these efforts, the agency  provides financial support for drinking water supply, wastewater  treatment, irrigation, dam safety, water rights litigation and negotiation,  and Indian land and water claim settlements programs. The agency’s  authority to support these programs comes primarily from the Snyder Act  of 1921 and the Indian Dams Safety Act of 1993.
section_title: Bureau of Land Management: $313.3 Million
paragraphs: The mission of the Bureau of Land Management is to sustain the health,  diversity, and productivity of federally owned lands that are located  primarily in 12 western states. As such, the agency supports watershed  management and water dispute management activities and carries out  these efforts primarily under the Federal Land and Policy Management Act  of 1976. Among its programs, the agency supports water resource  inventories, watershed assessments, wetland and stream projects, and the  monitoring of lake and stream ecosystems.
section_title: Bureau of Reclamation: $3.7 Billion
paragraphs: The mission of the Bureau of Reclamation is to manage, develop, and  protect water and related resources in an environmentally and  economically sound manner. As a part of these efforts, the agency is the  nation’s largest supplier of water—managing 457 dams and 348 reservoirs  in 17 western states—and delivers water to irrigate 10 million acres of land  and to supply more than 31 million municipal, rural, and industrial water  users. Financial support for freshwater programs is provided under a  number of different legal authorities, but primarily under the Reclamation  Act of 1902. The agency provides financial support for freshwater activities  primarily through the Water and Related Resources program, through  direct federal spending and through grant, loan, and loan guarantee  programs. The terms of funding vary and are dictated by project  authorization, legislation, or other authorizations. In addition to annual  appropriations, Reclamation receives funding from a variety of sources, such as the Reclamation Fund, Central Valley Project Restoration Fund,  and funds collected from surcharges placed on the use of water and power.  Reclamation also receives funds from other federal agencies to conduct  various freshwater programs, such as collecting data for the U.S.  Geological Survey’s watershed management and flood control activities.  Moreover, Reclamation—under section 607 of the Foreign Assistance Act  of 1961—periodically received funds from USAID and State to conduct  freshwater projects in other countries during fiscal years 2000 through  2004.
section_title: Fish and Wildlife Service: $653 Million
paragraphs: The mission of the Fish and Wildlife Service is, working with others, to  conserve, protect, and enhance fish, wildlife, and plants and their habitats  for the continuing benefit of the American people. As such, the agency’s  freshwater programs primarily support watershed protection, restoration,  and management through direct federal spending and grant programs. For  example, under the Landowner Incentive Program, the agency provides  grants to state agencies with primary responsibility for fish and wildlife to  establish or supplement landowner incentive programs that protect and  restore habitats on private lands. Freshwater programs carried out by the  agency are conducted under a number of different legal authorities— generally under the North American Wetlands Conservation Act of 1989,  the Pittman-Robertson Wildlife Restoration Act of 1937, and the Dingell- Johnson Sport Fish Restoration Act of 1950. According to agency officials,  the majority of the funds come from dedicated funding sources—the  Pittman-Robertson Wildlife Restoration Act and the Dingell-Johnson Sport  Fish Restoration Act, which includes excise taxes collected on sporting  arms, ammunition, bows and arrows, and fishing equipment. The remaining  funds come from annual appropriations from the general fund.
section_title: National Park Service: $227.4 Million
paragraphs: The mission of the National Park Service is to preserve unimpaired natural  and cultural resources and values of the national park system. Through the  National Park Service Organic Act of 1916, the agency mainly supports  watershed protection, restoration, and management programs as well as  drinking water supply and water rights management programs. Each of the  388 national parks is responsible for management activities in the park.  Information on the amount of financial support provided for freshwater  programs at individual parks is not tracked centrally. However, the agency  did provide information on major freshwater projects as well as the  financial support provided by the Water Resources Division. The agency  conducts freshwater work directly through wetlands restoration efforts at  the Everglades National Park and stream restoration activities affiliated  with the removal of the Elwha and Glines Canyon Dams in Olympic  National Park. In addition, the Water Resources Division within the agency  provides direct financial and technical support for freshwater resources  management and policy and operation support to units of the national park  system.
section_title: U.S. Geological Survey: $1.1 Billion
paragraphs: The mission of the U.S. Geological Survey is to provide reliable scientific  information to, among other things, describe and understand the Earth and  manage freshwater resources. The agency conducts programs that support  the planning and operation of freshwater resources, primarily through  technical assistance and research activities. Specifically, the agency  collects basic data on stream flow, groundwater levels, and water quality  and conducts interpretive studies designed to answer specific questions  about water resources. These activities are primarily carried out through  the Cooperative Water Program, National Water Quality Assessment, and  Hydrologic Networks and Analysis Program. The agency conducts its  freshwater programs under many different legal authorities—most  generally under the U.S. Geological Survey Organic Act. The agency also  receives funds from other federal agencies—such as EPA, the Corps, State,  and Interior’s National Park Service—to gather data on water resources  and water contaminant studies.
section_title: Department of Transportation: $182.7 Million
paragraphs: The Department of Transportation develops and coordinates policies to  provide for an efficient and economical national transportation system.  The department’s freshwater programs include watershed management  and navigation.
subsections: section_title: Federal Highway Administration: $116.2 Million
paragraphs: The Federal Highway Administration is charged with carrying out highway  safety projects and administering the Federal-Aid Highway Program.  Funded by the Highway Trust Fund as authorized by the Transportation  Equity Act for the 21st Century and other acts, the program provides  financial resources and technical assistance to state and local governments  for constructing, preserving, and improving highways. The program  provides financial support for selecting, planning, designing, and building  highways. Funds may also be used for reducing water pollution due to  highway runoff and are included in the project’s overall costs. States are  responsible for project oversight and may voluntarily report data spent on  individual project costs to the Federal Highway Administration. Another  component of the Federal-Aid Highway Program is the wetland mitigation  program, which replaces an average of 1.5 acres of wetlands for every acre  affected by highway construction activities. Financial information on this  program is not included in the agency’s total because it is incomplete and  primarily available on an acreage basis, which compares acres of wetlands  replaced and the acres affected by highway construction activities.
section_title: Saint Lawrence Seaway Development Corporation: $66.5 Million
paragraphs: A wholly owned government corporation within the Department of  Transportation, the Saint Lawrence Seaway Development Corporation was  created by the Wiley-Dondero Act of May 13, 1954. In cooperation with the  Canadian St. Lawrence Seaway Management Corporation, the agency  serves the marine transportation industries by providing a safe, secure,  reliable, efficient, and competitive international waterway. The agency  constructs, operates, and maintains the part of the St. Lawrence Seaway  between Montreal and Lake Erie that is within the territorial limits of the  United States. The majority of the agency’s activities are related to lock  infrastructure and waterway operations, maintenance, and security. The  agency receives the vast majority of its annual budget from an  appropriation from the Harbor Maintenance Trust Fund. The rest of its  budget is derived from other sources, such as interest income, rent  payments, and the collection of noncommercial tolls.
section_title: Independent Agencies: $15.6 Billion
subsections: section_title: Appalachian Regional Commission: $125.2 Million
paragraphs: The Appalachian Regional Commission, established by the Appalachian  Regional Development Act of 1965, as amended, seeks to foster economic  and community development across the 13-state Appalachian Region. The  region includes all of West Virginia and portions of Alabama, Georgia,  Kentucky, Maryland, Mississippi, New York, North Carolina, Ohio,  Pennsylvania, South Carolina, Tennessee, and Virginia. The agency  provides grants, which are primarily funded by annual appropriations, for  basic infrastructure services to public and nonprofit entities through its  Area Development Program. According to a senior agency official,  approximately 33 percent of the agency’s budget goes toward grants for  drinking water, wastewater, and related activities. The agency has other  programs that may also provide financial support for freshwater activities,  although that is not their primary purpose. The Appalachian Regional  Commission grants are administered either by the agency or by another  federal agency, such as Agriculture’s Rural Utilities Service; Commerce’s  Economic Development Administration; Housing’s Office of Community  Planning and Development; and, occasionally, EPA.
section_title: Environmental Protection Agency: $15.4 Billion
paragraphs: Within the Environmental Protection Agency, the Office of Water supports  most of the agency’s freshwater efforts, primarily through the Drinking  Water and Clean Water State Revolving Funds. Under these programs, EPA  provides grants to states for below-market loans to municipalities for  drinking water or surface water protection and restoration projects. The  Clean Water State Revolving Fund supports the construction of municipal  wastewater facilities and nonpoint source pollution control and estuary  protection projects. The Drinking Water State Revolving Fund provides  financial support to community water systems for installing, upgrading, or  replacing infrastructure. EPA also administers other grant programs, such  as the Public Water System Supervision Grants Program, Water Quality  Cooperative Agreements, Non-Point Source Grants, and Wetland Program  Grants. These programs are conducted primarily under the Clean Water Act  and the Safe Drinking Water Act. EPA also receives funds from other  federal agencies to carry out freshwater programs. For example, EPA  received funds from the Corps for wetland restoration activities in coastal  Louisiana.
section_title: National Science Foundation: $112.0 Million
paragraphs: Established by the National Science Foundation Act of 1950, the National  Science Foundation is an independent federal agency whose mission is to  promote the progress of science; advance the nation’s health, prosperity,  and welfare; and secure the nation’s defense. Using annual appropriations  from the general fund, the agency provides grants for research activities  across scientific and engineering disciplines to address issues related to,  among other things, the preservation, management, and enhancement of  the environment. With regard to freshwater issues, the agency provides  financial support for research on, among other things, drinking water  treatment, desalination, flood control, wastewater treatment, and  watershed management. For example, during fiscal years 2000 through  2004, the agency—through the Science and Technology Centers Program— provided financial support to the Center for Sustainability of semi-Arid  Hydrology and Riparian Areas. The center will carry out multidisciplinary  research into the hydrology and management of freshwater resources in  semi-arid regions.
section_title: Small Business Administration: $0.3 Million
paragraphs: The Small Business Administration, created by the Small Business Act of  1953, seeks to assist the interests of small businesses. The agency does not  lend money; rather, it provides loan guarantees to small businesses. The  agency’s Basic 7(a) and Basic 504 loan programs can be used for water  infrastructure projects, such as water supply and irrigation systems,  sewage treatment facilities, and dredging and surface cleanup activities.  Under both programs, the agency guarantees a portion of the loans and  shares the risk with a commercial lender if a borrower defaults on its loan.  A senior agency official notes that unlike the Basic 7(a) program, the Basic  504 program receives no appropriations. Eligibility for the programs varies  slightly, but under both programs recipients must be a for-profit  corporation. The Small Business Administration initially obligated about  $327,000 during fiscal years 2000 to 2004 to cover potential default on  water-related loans in its loan guarantee program. This small amount of  obligations is not included in our governmentwide totals.
section_title: Other Agencies
paragraphs: Our review focuses on the federal agencies that provide the majority of the  federal financial support for selected freshwater programs. Additional  agencies that support freshwater activities, as described by agency  officials, reports, and documents, are discussed below.
subsections: section_title: Bonneville Power Administration
paragraphs: The Bonneville Power Administration is a self-financing agency that  markets wholesale electrical power and operates and markets transmission  services in the Pacific Northwest. The agency pays for its costs through  power and transmission sales and funds the region’s efforts to protect and  rebuild fish and wildlife populations in the Columbia River Basin.
section_title: Federal Emergency Management Agency
paragraphs: Within the Department of Homeland Security, the Federal Emergency  Management Agency leads the nation’s efforts to prepare for hazards and  manages the federal response and recovery efforts following any national  event. In terms of freshwater activities, the agency manages the National  Flood Insurance Program—a program that assists with flood insurance,  floodplain management, and flood hazard mapping activities.
section_title: Regional Economic Development Entities
paragraphs: Regional commissions provide assistance to some of the nation’s most  chronically poor and distressed communities. Since its creation in 1965, the  Appalachian Regional Commission has been providing assistance to  counties affected by severe and chronic economic distress. More recently,  Congress created additional regional economic development entities. The  Delta Regional Authority, created in 2000, serves parts of Alabama,  Arkansas, Illinois, Kentucky, Louisiana, Mississippi, Missouri, and  Tennessee. The Northern Great Plains Regional Authority, created in 2002,  includes the states of Iowa, Minnesota, Nebraska, North Dakota, and South  Dakota. Additionally, Congress created a wholly intrastate commission in  1998, the Denali Commission, to provide infrastructure and economic  development throughout Alaska.
section_title: River Basin Commissions
paragraphs: The Water Resources Planning Act of 1965 authorized the President to  establish river basin commissions to serve as the principal agencies for  coordinating the development of water and related land resources in river  basins. In 1981, an executive order terminated six of these commissions.  Many river basin commissions established by interstate compacts, such as  the Delaware River Basin Commission, still exist. Information on federal  financial assistance provided to river basin commissions is not readily  available because individual commissions primarily maintain these data.
section_title: Tennessee Valley Authority
paragraphs: The Tennessee Valley Authority is a self-financing corporation of the  federal government that supplies affordable and reliable power and  operates fossil fuel, nuclear, and hydropower plants in the Tennessee  Valley. The agency receives its revenues through power sales and the sale  of bonds in the financial market and uses its own funds for a variety of  stewardship and watershed activities. These activities include reservoir  operations, navigation, watershed improvement activities, aquatic plant  management, and land planning and use.
section_title: Binational Commissions
paragraphs: During fiscal years 2000 through 2004, the United States provided financial  contributions to three binational commissions for freshwater projects  along U.S. borders. The United States typically made contributions to the  budgets of these commissions, and a portion of these contributions  supported freshwater projects along U.S. borders. Since the commissions  coordinate activities along U.S. borders with State and EPA, financial  information on the U.S. contributions for freshwater projects during fiscal  years 2000 through 2004 was available. These commissions, as described  by federal agencies and commission officials and documents, are discussed  below.
subsections: section_title: Border Environment Cooperation Commission: $15.4 Million
paragraphs: Created as a side agreement to the North American Free Trade Agreement,  the Border Environment Cooperation Commission is a binational  international organization that works to conserve, protect, and enhance the  environment along the U.S.-Mexico border. The commission’s annual  budget for drinking water and wastewater treatment activities comes  mainly from EPA. The commission’s annual budget for irrigation, air  quality, solid waste, and other projects comes from State and Mexico’s  Secretariat of Environment and Natural Resources. Managed by a  binational Board of Directors, composed of five members from each  country, the commission identifies, supports, evaluates, and certifies  various environmental infrastructure projects. Once the commission  certifies that sustainability and public participation requirements are met,  project sponsors may qualify for funding from the North American  Development Bank or from other sources requiring such certification.  Additionally, through its Project Development Assistance Program, which  is EPA-funded, the commission provides technical grants to qualifying  border communities for the development of water and wastewater  projects.
section_title: International Boundary and Water Commission: $151.1 Million
paragraphs: The International Boundary and Water Commission is a binational, treaty- based organization comprised of a U.S. section, headquartered in El Paso,  Texas, and a Mexican section, headquartered in Ciudad Juarez, Mexico.  Through binational cooperation, the commission seeks to preserve the  international land and river boundary between Mexico and the United  States in a manner that balances economic, environmental, and sovereignty  needs; carry out the conservation, flood control, national ownership, and  utilization of international waters; and improve the quality and utilization  of international waters in a manner that supports ecological needs and  regional development. The U.S. section of the commission operates under  State’s foreign policy guidance and receives an annual appropriation  through the Departments of Commerce, State, Justice, and other related  agencies’ appropriation bills. The U.S. section of the commission operates  and maintains two international wastewater treatment plants, multiple  diversion dams, and numerous smaller in-river structures for flood control  and water distribution. In addition, the U.S. section and the Mexican  section of the commission jointly operate two international dams.  Additionally, the U.S. section of the commission is responsible for the  operation and maintenance of five flood control projects with over 500  miles of levees and related structures, which protect approximately 3  million residents and 1.5 million acres of adjoining farmland in the United  States and Mexico.
section_title: International Joint Commission: $8.1 Million
paragraphs: Established by the Boundary Waters Treaty of 1909, the International Joint  Commission is an independent binational organization that assists the  governments of the United States and Canada in addressing water quality  and quantity issues and air pollution problems along the U.S.-Canadian  border. The U.S. section of the commission receives an annual  appropriation through State for these purposes. The commission is made  up of six commissioners, three that are appointed by the President of the  United States and three appointed by the Governor in Council of Canada,  on the advice of the Prime Minister. Although the commission does not  build or maintain any water-related infrastructure, it undertakes research  efforts and analyses of binational water issues and of the operations of  selected water works affecting both countries. For example, a current  research and development effort is a 5-year, $20-million study to determine  changes to the operation of infrastructure that affect water levels and flows  on Lake Ontario and the St. Lawrence River. The U.S. section and the  Canadian government are sharing equally the cost of this study.
section_title: Federal Financial Support for Freshwater Programs Abroad
paragraphs: This appendix on U.S. financial support of freshwater programs abroad has  three sections. First, we provide a general overview of the agencies  responsible for the majority of the U.S. government’s direct financial  support for freshwater programs abroad, along with the total amount each  agency provided for freshwater programs during fiscal years 2000 through  2004, excluding aid provided to Afghanistan and Iraq. Second, we briefly  discuss other agencies that can also support freshwater programs abroad.  Third, we provide information on international organizations to which the  United States contributes annually and that support freshwater projects  around the world.
subsections: section_title: Federal Agencies
paragraphs: The following agencies provide the majority of the U.S. government’s  financial support specifically for freshwater programs abroad. These  programs, as described by agency officials, documents, and reports, are  discussed below.
subsections: section_title: Department of Agriculture: $26.8 Million
paragraphs: With the Department of Agriculture, the Foreign Agricultural Service works  to improve foreign market access for U.S. products and provides food aid  and technical assistance to foreign countries. As the primary agency  responsible for Agriculture’s international work, the agency administers  international research and technical assistance activities in coordination  with developing and transitional countries. These activities include  international cooperative research efforts on freshwater quality and  availability, irrigation, and watershed management issues. The majority of  the agency’s financial support for freshwater activities abroad is provided  by the Export Credit Guarantee Program using various food aid  agreements, as authorized by several statutes, including the Food for  Progress Act of 1985; section 416(b) of the Agriculture Act of 1949, as  amended; and the McGovern-Dole International Food for Education and  Child Nutrition Program of 2003. Through these food aid agreements, the  Export Credit Guarantee Program provides U.S. agricultural commodities  to a recipient country for resale. The proceeds from the sale may be used to  support various agricultural, economic, and infrastructure development  projects in the recipient country. Recently, this program funded the  development of, among other things, water supply, irrigation, and water  treatment projects in countries such as Guatemala, Pakistan, Vietnam, and  Uzbekistan. Additionally, as authorized by section 1543 of the Food,  Agriculture, Conservation, and Trade Act of 1990, as amended, the agency  manages the Cochran Fellowship Program, which provides opportunities  for professionals from foreign countries to attend training programs on a  number of agricultural issues, including drought mitigation and irrigation  management.
section_title: Department of Defense: $0.5 Million
paragraphs: Although freshwater is not a focus area for the Department of Defense, the  department provides financial support for several efforts related to  freshwater projects abroad. In addition to providing engineering services  for military and civilian purposes in the United States, the Corps, through  its Civil Works program, provides technical assistance to foreign countries  on a number of freshwater issues, such as wastewater treatment, flood  control, and irrigation. The Corps is authorized by section 234 (Interagency  and International Support Authority) of the Water Resources Development  Act of 1996 to provide up to $250,000 of its own funding for technical  assistance on freshwater projects to international organizations and federal  agencies in foreign countries. However, other federal agencies, such as  USAID, and the governments of foreign countries often provide the funding  that supports the Corps’ freshwater work in foreign countries. Recently, the  Corps received funds from USAID to provide technical assistance for the  reconstruction of drinking water infrastructure and wastewater treatment  systems in Iraq. The Corps also received funds from USAID for similar  work in Afghanistan.
In addition to the Corps, the Defense Security Cooperation Agency, within  the Office of the Secretary of Defense, coordinates and oversees  humanitarian assistance programs abroad. Under 10 U.S.C. § 2561, U.S.  military units are authorized to perform humanitarian activities (primarily  carried out through contracts) in communities and areas where military  units are deployed abroad. These activities include, among other activities,  digging wells and improving sanitation facilities. For example, military  commanders in Afghanistan and Iraq from the United States Central  Command have used these funds to repair and augment drinking water and  wastewater systems.
section_title: Department of the Interior: $128.7 Million
paragraphs: As part of its mission to conserve fish, wildlife, and plants and their  habitats for the American people, the Fish and Wildlife Service—within the  Department of the Interior—protects wetlands used by waterfowl and  migratory birds, in Canada and Mexico, as well as in countries in Central  and South America and the Caribbean. The agency provides financial  support to protect, restore, and enhance these wetlands through several  programs, including the North American Wetlands Conservation Act of  1989 and the Neotropical Migratory Bird Conservation Act of 2000.  Through its North American Wetlands Conservation program, the agency  coordinates with representatives from Canada and Mexico to provide  grants for long-term acquisition, restoration, and/or enhancement of  critical wetlands used by waterfowl and migratory birds in the three  countries. Grant recipients are required to provide matching funds at a 1:1  ratio. Under the Neotropical Migratory Bird Conservation Act of 2000, the  Fish and Wildlife Service established a matching grants program that,  among other things, supports the maintenance, protection, and restoration  of the habitats of birds in the United States, Latin America, and the  Caribbean. Government agencies, individuals, corporations, and other  private entities may apply for a grant from this program, if they provide $3  for every $1 they receive from the agency.
section_title: Department of State: $8.7 Million
paragraphs: As recognized in the Foreign Assistance Act of 1961, as amended, the  Department of State is the lead agency responsible for the continuous  supervision and general direction of foreign assistance. The department’s  mission is to create a more secure, democratic, and prosperous world for  the benefit of the American people and the international community.
Several bureaus within State provide financial support for freshwater  programs abroad; however, the level of their involvement varies. The  Bureau of Oceans and International Environmental and Scientific Affairs  coordinates the department’s overall policy for international environmental  issues, including freshwater issues. The bureau provides grants to support  international initiatives on watershed management, access to safe drinking  water, flood control, and water dispute management. The Bureau of Near  Eastern Affairs coordinates U.S. foreign policy and diplomatic relations  with countries in the Middle East and North Africa. In support of the United  State’s role in the Middle East Peace Process, this bureau promotes  technical cooperation between Arabs and Israelis on numerous freshwater  issues. Typically, the bureau provides funds to other federal agencies, such  as those within Agriculture and Interior, for projects designed to promote  water cooperation and the building of strong working relationships  between water officials and experts in the region.
The Bureau of Population, Refugees, and Migration coordinates the  department’s efforts related to global population, refugees, and migration  issues. This bureau provides financial support for various water and  sanitation projects in foreign countries through grants and cooperative  agreements issued to international and nongovernmental organizations.  These projects provide water for drinking, irrigation, and sanitation to  temporary refugee camps. Although State does not specifically track  freshwater expenditures for refugee camps, a bureau official estimates that  less than $5 million a year is obligated to support these activities.
The Bureau of International Organization Affairs develops and implements  the U.S. government’s policies and efforts with the United Nations, its  affiliated agencies, and other international organizations. This bureau  manages the U.S. government’s assessed and voluntary contributions to  various organizations. Most of these contributions are made directly to the  core budgets of these organizations and are not designated for specific  activities.
section_title: Independent Agencies
subsections: section_title: African Development Foundation: $0.9 Million
paragraphs: The African Development Foundation is a public corporation and federal  agency established by the African Development Foundation Act of 1980, as  amended. The agency supports community-based, self-help initiatives to  alleviate poverty and to promote sustainable development in Africa.  Currently working in 15 sub-Saharan African countries, the agency  provides grants of usually $250,000 or less directly to community-based,  nongovernmental organizations and enterprises administered by Africans.  The agency’s grants enable community-based groups to expand their  production capacity and increase incomes, thereby improving the  community’s economic security. Although freshwater is not a program  focus, the agency supported various irrigation, drinking water, and  wastewater projects in countries such as Botswana, Guinea, Mali, and  Niger.
section_title: National Science Foundation: $0.7 Million
paragraphs: Established by the National Science Foundation Act of 1950, as amended,  the National Science Foundation is an independent U.S. government  agency whose mission is to promote the progress of science; advance the  national health, prosperity, and welfare; and secure the national defense.  Using annual appropriations from the general fund, the agency provides  grants for scientific research for various freshwater issues abroad,  including watershed management, drinking water treatment, and  wastewater management. The statute creating the agency authorizes it to  promote the interchange of scientific information between scientists and  engineers in the United States and foreign countries. For example, the  agency’s Office of International Science and Engineering provides grants to  U.S. scientists and engineers to participate in international collaborative  research partnerships with their foreign colleagues.
section_title: U.S. Agency for International Development: $1.8 Billion
paragraphs: The U.S. Agency for International Development is an independent federal  agency created under the Foreign Assistance Act of 1961, as amended.  Operating under guidance from the Secretary of State, USAID provides  economic, development, and humanitarian assistance around the world in  support of U.S. foreign policy goals. As part of the agency’s efforts to  promote an integrated approach to water resources management, USAID  provides technical assistance, educational and outreach opportunities,  emergency relief assistance, and international leadership on a variety of  water issues in over 76 countries. USAID reports that over the 5-year period  covered in this analysis (fiscal years 2000 through 2004), approximately 5  percent of its annual appropriation has been used to support freshwater- related activities. USAID provides financial support for freshwater  programs through partnerships with nongovernmental organizations;  government entities (host country and U.S. government agencies); and  public international organizations, such as United Nations agencies.
During fiscal years 2000 through 2004, USAID missions in Egypt, Jordan,  and the West Bank/Gaza received the most financial support from USAID  for freshwater projects. Most funds for freshwater projects are distributed  as grants, although some funds are provided in the form of loan guarantees  through USAID’s Development Credit Authority. The majority of USAID’s  freshwater funds are used to support water supply projects. USAID also  supports sanitation and wastewater management projects. Additionally,  USAID provides financial support for, among other things, watershed  management, irrigation, and flood and drought forecasting and  preparedness activities in foreign countries. During fiscal years 2002  through 2004, USAID provided about $670 million for the reconstruction of  drinking water infrastructure and wastewater treatment systems in  Afghanistan and Iraq. USAID primarily drew on funds from the President’s  Supplemental Appropriation for the Reconstruction and Development of  Iraq and Afghanistan to carry out this work.
section_title: U.S. Trade and Development Agency: $28.6 Million
paragraphs: Created under the Foreign Assistance Act of 1961, as amended, the U.S.  Trade and Development Agency is an agency that provides financial  support to promote U.S. private sector participation in development  projects in developing and middle-income countries. The agency offers  early planning support to overseas development projects by funding  technical assistance activities, feasibility studies, conferences, and other  activities. The agency provides grants directly to host-country project  sponsors (i.e., local, regional, and national governments; private sector;  and nongovernmental organizations) that agree to select U.S. companies to  perform the work associated with project planning. Agency-supported  projects span a variety of sectors, including drinking water supply,  wastewater treatment, irrigation, and flood control. For example, the  agency supported the development of water treatment and supply projects  in Ghana, wastewater treatment facilities in India, and an irrigation project  in China.
section_title: Other Agencies
paragraphs: Our review focused on the federal agencies that provide the majority of the  federal financial support for selected freshwater programs abroad.  Additional agencies that support freshwater programs, as described by  agency officials, reports, and documents, are discussed below.
subsections: section_title: Department of Health and Human Services—Centers for Disease Control and Prevention
paragraphs: In conjunction with the Pan American Health Organization, the Centers for  Disease Control and Prevention developed a Safe Water System program to  help provide safe drinking water to developing countries. To date, this  project has supplied inexpensive, adaptable, and flexible drinking water  technologies to communities in at least 19 countries.
section_title: Export-Import Bank of the United States
paragraphs: The Export-Import Bank is an independent agency that assists in financing  the export of U.S. goods and services to international markets by providing  U.S. businesses with working capital guarantees, export credit insurance,  loan guarantees, and direct loans. Although freshwater-related goods and  services are not a primary focus, the bank provides financial support for  the export of water purification devices, wastewater treatment systems,  and technologies designed to prevent and mitigate water pollution.
section_title: Inter-American Foundation
paragraphs: The Inter-American Foundation is an independent foreign assistance  agency that provides grants to nongovernmental organizations in Latin  America and the Caribbean for economic and social development projects.  The agency primarily relies on congressional appropriations to fund  development projects. The agency also has access to additional funding  from the Social Progress Trust Fund, which consists of payments on loans  made by the United States to Latin American and Caribbean countries  under the Alliance for Progress program. According to a senior agency  official, the agency does not specifically track freshwater expenditures,  which are a small part of the agency’s total portfolio; activities supported  include improving access to drinking water, developing irrigation systems,  and protecting watersheds.
section_title: Overseas Private Investment Corporation
paragraphs: The Overseas Private Investment Corporation is a self-sustaining U.S.  government corporation created to facilitate U.S. private investment in  developing countries and emerging market economies, primarily by  offering political risk insurance, loan guarantees, and direct loans. The  agency provides financial support for various development projects  worldwide, including some freshwater projects.
section_title: Peace Corps
paragraphs: Created in late 1961, the Peace Corps promotes world peace and friendship  by helping developing countries meet their need for trained workers while  promoting mutual understanding between Americans and citizens of  foreign countries. The Peace Corps supports volunteers who commit to 2- year assignments in host communities where they work on various  community development projects, such as teaching English, strengthening  farmer cooperatives, or building sanitation systems. Although some  volunteers work on water sanitation systems and agricultural projects, the  Peace Corps does not directly fund any freshwater projects.
section_title: Selected International Organizations
paragraphs: During fiscal years 2000 through 2004, the United States indirectly  supported freshwater programs abroad through its financial contributions  to various international organizations that support freshwater programs  abroad. The United States typically made contributions to the general  budgets of these organizations, although some contributions were directed  for a particular project or program. Some portion of the general budgets of  these organizations was used to support freshwater projects around the  world. These organizations can be split into two groups: (1) multilateral  development banks and international financial institutions and (2) other  international organizations. Contributions to multilateral development  banks and international financial institutions are typically coordinated by  the Department of the Treasury, while contributions to the other  organizations are typically coordinated by State. These organizations’  freshwater projects and programs, as described by officials and  documents, are discussed below.
subsections: section_title: Multilateral Development Banks and Financial Institutions
subsections: section_title: African Development Bank Group
paragraphs: The African Development Bank Group—the African Development Bank  and the African Development Fund—provides loans and offers technical  assistance to African countries for development projects. The bank’s  priority areas include rural water supply, irrigation, and other agricultural  and development projects. The bank’s membership includes all countries in  Africa as well as some countries in the Americas, Asia, and Europe.
section_title: Asian Development Bank
paragraphs: The Asian Development Bank—the Ordinary Capital Resources group and  the Asian Development Fund—provides loans and loan guarantees and  offers technical assistance to low- and middle-income countries in Asia and  the Pacific for a variety of economic and social development projects.  Traditionally, the bank supports projects related to agriculture (including  irrigation) and rural development. Recently, the bank placed additional  importance on its Social Infrastructure Sector, which supports projects to  improve water supply. Since its inception, the bank has lent the most  money to Indonesia; China, Pakistan, and India were also major borrowers.
section_title: European Bank for Reconstruction and Development
paragraphs: Created in 1991, the European Bank for Reconstruction and Development  seeks to foster the transition toward open market-oriented economies in  countries in Central and Eastern Europe and the Commonwealth of  Independent States. The bank provides financial support for, among other  issues, the development and improvement of water and wastewater  systems.
section_title: Global Environment Facility
paragraphs: The Global Environment Facility is a multilateral, financial institution that  provides grants and other financial assistance, particularly in low- and  middle-income countries, for projects that protect the global environment.  One of the organization’s top priority areas is protecting freshwater  resources. Working in partnership with the U.N. Environment Programme,  the U.N. Development Programme, and the World Bank, the organization  funds projects to improve protection of safe drinking water supply, manage  water disputes, and reduce water-borne pollutants.
section_title: Inter-American Development Bank
paragraphs: The Inter-American Development Bank provides financial and technical  support for various development projects in Latin America and the  Caribbean. The bank funds projects in several sectors, including  agriculture, fisheries, water and sanitation, and the environment. Since  1961, the bank has lent most of its money to Brazil, Argentina, Mexico, and  Colombia.
section_title: International Fund for Agricultural Development
paragraphs: Established in 1977, the International Fund for Agricultural Development  works to alleviate poverty and improve nutrition around the world, with a  special focus on low-income countries. As an international financial  institution associated with the United Nations, the organization provides  loans and grants for technical assistance, research, and activities in several  areas related to freshwater. These areas include agricultural development,  irrigation, and water infrastructure development in rural areas.
section_title: North American Development Bank
paragraphs: Created in a side agreement to the North American Free Trade Agreement,  the North American Development Bank is jointly funded by Mexico and the  United States. Working closely with the Border Environment Cooperation  Commission, the bank finances projects related to drinking water supply,  wastewater treatment, and other environmental infrastructure projects  along the U.S.-Mexico border. The United States provides its annual  contributions—through EPA—to the bank as a grant. The bank may use a  portion of these contributions to support freshwater projects along the U.S.  borders. The bank’s Board of Directors consists of members from the  United States and Mexico, with the chairmanship of the board annually  alternating between U.S. and Mexican representatives.
section_title: World Bank Group
paragraphs: The World Bank Group, the largest multilateral development bank, is made  up of the International Bank for Reconstruction and Development,  International Development Association, International Finance Corporation,  and Multilateral Investment Guaranty Agency. These institutions provide  loans and loan guarantees and offer technical assistance for various  economic and social development projects. The bank has several water- related program areas that focus on, among other things, extending water  supply and sanitation services to the urban poor, increasing rural access to  water supply and sanitation, and improving water resources management.  The bank has funded the construction of dams, flood control  infrastructure, and drinking water and wastewater treatment facilities in  countries around the world. Together with the U.N. Development  Programme, the World Bank created the Water and Sanitation Program,  which works with donors, governments of foreign countries, and  nongovernmental organizations to support the development of cost- effective water delivery technologies and implementation of strategies for  providing safe water and sanitation to the world’s poor.
section_title: Other International Organizations That Support Freshwater Programs Abroad
subsections: section_title: Inter-American Institute for Cooperation on Agriculture
paragraphs: Created more than six decades ago, the Inter-American Institute for  Cooperation on Agriculture is a specialized international agency that  promotes agricultural development, food security, and rural economic  development in North, Central, and South America and the Caribbean. The  institute’s focal areas include rural development, agribusiness  development, and agricultural and food safety. Within these areas, the  institute provides technical assistance for the management of, among other  things, water resources, watershed management, and efforts to combat  desertification.
section_title: Organization of American States
paragraphs: The Organization of American States brings together 35 countries in North,  Central, and South America and the Caribbean to strengthen cooperation  and advance common interests. Through its Office for Sustainable  Development and Environment, the organization provides technical  assistance to countries and promotes cooperation on various issues,  including integrated water resources management. For example, the  organization provides financial support to help countries in South and  Central America manage transboundary water resources in several major  river basins. The organization works in partnership with the United  Nations’ Environment Programme, the World Bank, and the Global  Environment Facility on these projects. The organization also serves as the  technical secretariat for the Inter-American Water Resources Network,  which was created in 1993 to foster cooperation on water management  issues in the hemisphere.
section_title: Organisation for Economic Co- operation and Development
paragraphs: The Organisation for Economic Co-operation and Development brings  together 30 industrialized nations in a forum to discuss, develop, and refine  economic and social policies. The organization is funded by contributions  from member countries, with the United States providing 25 percent of the  general budget. Among other issues, the organization carries out research  and analysis on water management policies, water use for agriculture,  water pricing, water and wastewater infrastructure financing, and  technologies to improve water quality.
section_title: Pan American Health Organization
paragraphs: The Pan American Health Organization is an international public health  agency that works to improve the health and living standards of residents  in North, Central, and South America and the Caribbean. Affiliated with the  United Nations and the World Health Organization, the organization  provides technical support to various countries on a number of health- related issues. Among the organization’s top priorities are improving  supplies of clean water and adequate sanitation facilities.
section_title: Ramsar Convention on Wetlands
paragraphs: The Ramsar Convention on Wetlands is an inter-governmental treaty  adopted in 1971 that addresses various wetlands-related issues worldwide.  A small secretariat carries out the work of the convention using financial  contributions from the 138 countries that are signatories to the convention.  The United States makes voluntary contributions to the organization’s  general budget and also funds a grant program for wetlands-related  training. The organization has also used U.S. contributions to support the  protection of key wetland habitats for migratory birds in Latin American  and the Caribbean.
section_title: United Nations
paragraphs: Among other purposes, the United Nations seeks to achieve international  cooperation in solving economic, social, cultural, and humanitarian  problems. Funded through assessed dues paid by its 191 member nations,  the United Nations consists of a number of commissions, funds,  organizations, and other entities developed to respond to global needs. The  United States has been the largest contributor of funds since the  organization’s inception in 1945, making annual contributions that amount  to about 22 percent of the United Nations’ general budget. In addition to its  assessed contributions, the United States provides voluntary contributions  to the United Nations and its affiliated organizations. Most of these  contributions are used for humanitarian and development programs. With  respect to freshwater projects, the United Nations provides advisory and  technical assistance to governments on various freshwater issues, such as  water resources management and infrastructure improvements. Within the  United Nations’ system, 26 entities support water-related projects.  However, according to a U.N. official who works on freshwater issues, the  entities do not currently work together to track the financial support  provided for freshwater projects.
section_title: World Conservation Union
paragraphs: Created in 1948, the World Conservation Union is an international  environmental organization with members from the government of foreign  countries, governmental agencies, and nongovernmental entities. The  organization has over 1,000 members from 140 countries, including 6 U.S.  federal agencies—USAID, Agriculture’s Forest Service, Commerce’s  National Oceanic and Atmospheric Administration, Interior’s Fish and  Wildlife Service and National Park Service, and EPA. The organization’s  mission is to encourage the conservation of nature and ensure that the use  of natural resources is ecologically sustainable. In addition to providing  technical assistance on the management and restoration of wetlands and  water resources, the organization supports several freshwater projects,  such as the Water for Nature Initiative. This initiative works with partners  in approximately 40 countries to improve water resources management in  10 river basins.
section_title: Comments from the U.S. Department of Health and Human Services
section_title: Comments from the U.S. Department of the Interior
section_title: Comments from the U.S. Agency for International Development
section_title: GAO Contacts and Staff Acknowledgments
subsections: section_title: GAO Contacts
section_title: Staff Acknowledgments
paragraphs: In addition to those named above, Diana Cheng, Richard P. Johnson,  Nathan Morris, Lynn Musser, Jonathan Nash, and Kim Raheb made  significant contributions to this report. Denise Fantone, Jessica Fast,   Carol Herrnstadt Shulman, and John Hutton also contributed to this report.