Summary: The Ocean Dumping Ban Act of 1988 established dumping fee requirements to encourage and assist sewage authorities that dump sludge to come up with alternative ways of disposing of sludge. This testimony discusses (1) how much sludge was dumped in the ocean in 1989 and 1990, (2) whether the correct fees were collected and deposited in the proper accounts, and (3) what specific activities were funded with the fees collected. Overall, GAO found that the collection and disposition of the fees have been implemented in accordance with the provisions of the act. Sewage authorities, however, need to develop and implement long-term strategies to provide a more permanent solution. These long-range strategies may face potentially difficult challenges, such as local residents' opposition to building incinerators burning sludge. In addition, any plans to market sludge as a soil conditioner, fertilizer, or other beneficial product will have to meet stringent pollution requirements and establish a steady market for such products.