STATEMENT OF PRINCIPLES

       The Everglades is a wetland and wildlife resource unique in all the world. It has defined life in South Florida since humankind's introduction to the region. In acting to protect this important resource, we begin to define life for subsequent generations of Americans; what we choose to protect helps define us as a people.

       In pursuit of human progress, South Florida has been ditched, diked, and drained for much of this century. By so doing, we have sought to provide a healthy, attractive living environment for millions of people safe from flooding and other natural forces; and to provide a base for a flourishing agricultural industry that provides important products, jobs, and income regionally and nationally.

       But in the last decade we have come to realize the tremendous cost this alteration of natural systems has exacted on the region. This agreement will begin the renewal of the Everglades ecosystem, restoring natural flows of clean water. The result will benefit wildlife, urban drinking water supplies, and Florida Bay and other coastal waters and the life they sustain -- waters which are inextricably linked to the health of the Everglades themselves.

       The Statement of Principles set out here is the basis on which the parties signing this agreement will seek a stay of pending litigation for 90 days, to reach a detailed settlement agreement resolving disputes that would otherwise continue for many years at enormous cost not just to the parties, but to the Everglades as well - - postponing the initiation of action to address critical threats to the system. Based on these principles, we will seek to include in the settlement discussions all parties to pending litigation who wish to contribute to the process.

       We pledge more than a Plan; we pledge to provide the resources necessary for its successful implementation.

       Moreover, we pledge to inaugurate an unprecedented new partnership, joining the Federal and State governments with the agricultural industry of South Florida, to restore natural values to the Everglades while also maintaining agriculture as part of a robust regional economy.

       In addition, we will jointly conduct future scientific research on the ecological needs of the Everglades system and appropriate means to address those needs.

       In so doing, we hope our efforts can become a national and international model for sustaining both the environment and the economy.

       In light of our commitment to implement these Principles, the parties to this Statement agree to join in motions to stay all Everglades litigation and administrative proceedings, including pending 298 District Administrative Litigation regarding Lake Okeechobee, for a period of 90 days, except for entry and access and the appeals pending before the Eleventh Circuit Court of Appeals.

       This is necessary because, while this Statement signals a commitment to a process of mutual implementation of these Principles. It cannot and does not contain all provisions necessary for a comprehensive resolution of Everglades issues. We will use the 90-day period to resolve remaining issues and develop a complete settlement agreement.

A Commitment to Increasing Water Quantity to the Everglades.

       A Technical Plan has been developed in intensive discussions over the past 120 days by experts from all sides. That Technical Plan addresses the improvement of water quality reaching the Everglades. It also commits to important steps in addressing pressing water quantity, sheet flow and other hydro-period restoration needs of the Everglades Ecosystem and of agricultural and other elements of South Florida's economy.

       The parties recognize the need for continued availability of water for crops and will continue discussions on this issue over the next 90 days.

A Commitment to Implement a Detailed Technical Plan and A Specific Construction Schedule.

       Implementation of the Technical Plan involves acquisition and establishment of flow-through filtration marshes, construction of works, and other activities. In structuring the construction schedule for the Plan, the parties intend to effect immediate reduction of phosphorous entering the Loxahatchee National Wildlife Refuge and portions of the Miccosukee Tribe of Indians of Florida lands. In addition, the Plan will enhance hydro-period restoration to the Everglades. Project construction will be scheduled to provide early delivery of treated water to those areas. Attachment 1 provides a map of the Technical Plan.

       The parties will commit to good faith, best efforts to build the project pursuant to the Technical Plan and the Construction Schedule to be agreed upon, unless all parties agree that new information or technological advances justify modifications.

       Implementation of the Technical Plan is an important step in assuring long term protection for Everglades National park, as well as the Refuge, Reservation lands, and downstream waters. The parties believe that the Technical Plan, combined with the Incentive plans described below for significantly-improved on-farm phosphorous reduction by industry, is the best way to move forward.

       There are also public and resource benefits in the Water Conservation Areas resulting from sheet flow and other hydro-period improvements.

       In short, this is right for the Everglades Ecosystem, as well as for the parties to the litigation. It is a good deal for the public, for the environment, and for the economy.

Reduced Phosphorous Outputs Achieved Through Performance-Based Best Management Practices (BMPs).

       The Technical Plan calls for significant reductions of on-farm phosphorous outputs over the 20 year period. To achieve this goal, strong incentives for performance-based Best Management Practices (BMPs) will be established. The BMPs are based on performance, and they acknowledge and encourage development of new technologies that may more efficiently achieve these goals.

       The 90-day period will be used, in part, to establish objective and fair methods for calculating the reductions of phosphorous output. Achievement will be evaluated on a rolling-average or similar system, so that Industry has incentives for accelerated reduction. Appropriate credit will be supplied to Industry in light of the normal annual rainfall variations and will take into account changes in water deliveries by the District that are not under the control of industry.

Financial Principles

A Shared Financial Commitment

The Agricultural Industry's Financial Commitment

The State of Florida's Financial Commitment

Federal Commitments

Certainty and Enforceability

A Shared Financial Commitment.

       We contemplate that all parties will contribute financially to the implementation of the Technical Plan. In cases where legislation may be required to meet this commitment, those parties commit to seek and support such legislation. It is the sense of all signing parties that the financial terms outlined below and detailed in the attached achieve the objectives.

       Attachment 2 outlines the contemplated percentage contributions of the agricultural industry, State, District and Federal Government.

       To optimize the use of resources committed to this project, the parties will establish an engineering and construction collaborative process to be applied to its design, scheduling and construction.

The Agricultural Industry's Financial Commitment.

       Agricultural interests in the Everglades Agricultural Area commit to the following (detailed in Attachment 3 ).

$322 million. The agricultural industry has agreed to pay up to $322 million over 20 years to fund construction, research, monitoring, operation and maintenance and other incidental costs as outlined in the Technical Plan. The contributions begin at $12.5 million per year, increase to $18.5 million in the 13th year, and continue to the 20th year.

Limited credits for phosphorous reductions. Credits against contributions will be granted for achieving targeted reductions of phosphorous. These levels fulfill specific goals of the Technical Plan. The first year goal is a 30% reduction; the goal for the thirteenth year, and thereafter, is a 45% reduction. In no case will the dollar contributions in any given year fall below $11.625 million. If the reductions in phosphorous through BMP's are not achieved, the reductions in payment will not be realized.

Secured payments. During the 90-day period, the method of securing payments from the agricultural industry will be defined and made enforceable, thereby ensuring a consistent flow of funds. A trust fund or like mechanism will be created to ensure that all funds contributed are actually used for the intended purposes.

The State of Florida's Financial Commitment

       The Department of Environmental Protection will commit to its good faith, best efforts to pursue State funds from several sources during the construction period of the project, and the South Florida Water Management District will vote on an increase in the millage rate for ad valorem tax of .10 mil, generating approximately $21.8 million per year of cash flow which will be dedicated to Everglades restoration.

       A trust fund or like mechanism will be created to assure that additional tax receipts are actually used for Everglades restoration.

Federal Commitments.

       The Federal government will commit to its good faith, best efforts to pursue the authorized C-51 flood control project and the measures designed to provide substantial amounts of water to the Everglades. The measures designed to provide additional water to the Everglades are included as part of the work effort identified as Item 22 in the Technical Plan. The first cost of the authorized C-51 flood control project, excluding the measures designed to provide additional water to the Everglades, is approximately $54 million. The first cost of the C-51 flood control project, modified to include measures to provide additional water to the Everglades, is approximately $107 million. The Department of the Army, Department of the Interior and the local sponsor propose to participate in this work in accordance with applicable law, appropriations, and administration policies.

Certainty and Enforceability

       All parties must have a clear understanding and recognition of their rights and obligations, and of the process by which those rights and obligations will be determined now and in the future. For the federal government, achievement of the goals of the federal court settlement, including those set forth in both the Phase I and Phase II targets, has remained the touchstone of these discussions.

       In return for substantial financial commitments and regulatory requirements, farm interests in the EAA seek to move forward with an assurance that their Everglades environmental responsibilities will be defined under the provisions of the final mediated agreement and under provisions of applicable law and administrative processes.

       For the state parties enhancement of the total Everglades ecosystem is paramount, including the removal of phosphorous, correction of long standing hydro-period problems and increasing the total quantity of water flowing through the system.

       The foregoing principles will be the basis for settlement of all outstanding matters among the parties only upon consummation of the entire mediated agreement.

       Instruments and procedures will be developed which make the provisions outlined above legally enforceable.

       Complex issues must be addressed as the provisions for implementing these principles are defined. We believe that the foundation provided by the experience gained over the past few months in resolving the most difficult matters of design and funding, as part of an overall mediated resolution, provide assurance that additional matters will be satisfactorily resolved as well. To assist in these discussions, detailed briefings will be provided to the principals of the parties 30, 60, and 80 days from now.

SIGNED:

For the United States:

For the South Florida Water Management District:

The obligations of the South Florida Water Management District will be through action of the Governing Board. The Statement of Principles will be presented to the Governing Board on July 15, 1993.

1. Base payment corresponds to 25% BMPs.

2. Minimum payment requires achievement of target BMP percentage.

3. Credits will be given for all reductions in excess of the current regulatory requirement of a 25% reduction. The value of each 1% reduction beyond 25% will be as follows:

4. A rolling average over a multi-year period or similar system will be determined to give incentive for accelerated reductions above target levels. This is not intended to provide long term banking of credits.

5. If the BMP target is not achieved in any year, the value of each 1% incentive credit deficit shall be added to the minimum payment unless accumulated credits offset the deficit.

6. The methodology for measuring and determining BMP reductions for purposes of the EAA payment schedule shall be agreed upon as part of the final mediated agreement.

Attachments

Attachment 1:  Map of the Technical Plan (Everglades Agricultural Area and Environs)

Attachment 2:  Chart (sources of funds)

Attachment 3:  Schedule of EAA Annual Payments and BMP Targets 

Attachment 1

Map of the Technical Plan

Everglades Agricultural Area and Environs

Detail: Runoff diverted to STAs

State-Owned Lands

Treat L.O. Discharges

Ag Runoff

Urban Runoff

Protected Natural Areas

Attachment 2

Chart

Sources of Funds:
Minimum BMPs (25%)

EAA Farmers (47.9%)

SFWMD (25.8%)

State (15.7%)

Federal Government (8.4%)

Western Basin Farmers (2.2%)

Attachment 3

Schedule of EAA Annual Payments and BMP Targets