Paul Rohde

Water Resources (& Reform) Development Act

113th Congress

WRDA State of Play

• 46% of House Members were not in office during WRDA 2007• House: The Extra “R” (WRRDA – H.R. 3080)• Streamlining: “3x3x3”

– Hard 3 Year Cap on Project Studies;– Cost Caps at $3M Limit to Study;– 3 Levels of Review

• Funding Roles for Non-Federal Interests• Recognition of the “Olmsted Problem” • Teaparty Outrage? • SAP (Statement of Admin. Policy) • Only 17 “No” Votes Over 500 House/Senate Members

Milestone Achievement

Olmsted & Inland Waterways

Trust Fund

•FY14 Omnibus

•WRRDA

Impacts from Olmsted Lock & Dam

COMPLETION OF OTHER CONSTRUCTION PROJECTS SEVERELY DELAYED

Ongoing Construction – Kentucky Lock $0 in FY12 ($400+ million needed to complete by FY29)– Lower Monongahela River Locks & Dams 2, 3 & 4

$36 million in FY12 ($1.7 billion to complete by FY23)– Chickamauga $0 in FY12, restart in FY22 & completed in FY25– IHNC Lock in New Orleans $0 in FY12, restart in FY29 & completed

in the 2040’s

TRUST FUND DOLLARS UNAVAILABLE FOR REHABILITATIONS ?

2090 BEFORE COMPLETION OF 22 AUTHORIZED PROJECTS

NO NEW STARTS UNTIL AFTER FY 2040!

Status Quo - Project Completion Dates (New Construction)

•Olmsted L/D Construction (2020)•Lower Mon 2,3 & 4 Replacement, phase 1 (2027)•Kentucky Lock Addition (2041)•Chickamauga Replacement Lock (2051)•L/D 25 Upper MS 1200’ Lock Addition (2064)•High Island to Brazos River, TX (2053) •Lagrange 1200’ Lock Addition (2070) •Inner Harbor Lock Replacement (2077)•L/D 22 Upper MS 1200’ Lock Addition (2083)•L/D 24 Upper MS 1200’ Lock Addition (2090)

Inland Waterways Trust FundYear End Balances 1992-2013

78%78%

Percentage of River Locks in the U.S. Exceeding Their

50-Year Design Life*

* By the year 2020

1 Year of River Navigation Project Delay = Loss of .30 cents on Every Dollar Invested

Additional Investments in Waterways Provides Greater Value to the Nation (ROI) Than Other Key Infrastructure Sectors

Add’l Total Investment

by 2020

Protects $B in

Exports

Protects $B in GDP

Protects Jobs

Protects Personal Income

Waterways $16B $270B $697B 738,000 $872B

Airports* $39B $54B $313B 350,000 $361B

Electricity $107B $51B $496B 529,000 $656B

Water/Wastewater $84B $20B $416B 669,000 $541B

Roads $846B $114B $897B 877,000 $930B* Airport needs and gaps include anticipated cost of NextGen: $20 billion by 2020

ASCE 2013 “Failure to Act” Study

Feb 2013: S. 407 (RIVER Act) Capital Development Plan with .09 cent diesel increase…7 cosponsors

March 2013: H.R. 1149 (WAVE 4) CDP, .06 cent increase…33 cosponsors

May 14: Senate Passes (83-14) S. 601 (WRDA) Project delivery reforms of CDP, Inland Waterways Trust Fund NOT to be used for Olmsted dam completion, definition of “major rehabilitation” threshold, Upper St. Anthony Falls closure

June: Senate Appropriations approval of S. 1245 (E&WD) Inland Waterways Trust Fund NOT to be used for Olmsted for one year, funding for O&M and construction funding, Olmsted 902(b) authorization for cost increase

July: House passage of H.R. 2609 (FY14 E&WD) Strong O&M showing, Olmsted 902(b)

October 23: House Passes (417-3) H.R. 3080 (WRRDA) CDP project delivery reforms, 75% - 25% cost share on Olmsted, studies

November: Appointment & Convening of WRDA Conference

2014 – March 5 Obama Administration Budget Released 17% Reduction from Congressional FY14, 32% Reduction in Construction (Only Olmsted and Lower Mon)

113th U.S. Congress

WR(R)DA Enters Cyberspace

13

•Prioritization of Projects Across National System

• Risk-Based Assessment

• Focus on Finishing Projects, Recognizing Limited Funds

• Establish Monetary Definition for Baseline for “Rehabilitation”

•Inland Waterways Users Board

• Increase Industry Presence Concerning Lock Design/Construction

•Return IWTF to Original Intent

• Enact Cost-Share Cap for Overruns

NOT in WRRDA: .06-.09 Cents/Gallon Increase to Fuel Tax

H.R. 1149: “WAVE4” Waterways are Vital to the Economy, Energy, Efficiency & Environment

Rep. Dan Lipinski (D- 3, IL) and Rep. Ed Whitfield (R-1, KY)

Inland Navigation Key Issues

• Olmsted – Cost-Share Change, 902 Fix, Study to Determine ‘Why’

• Cost Share on Projects Utilizing Inland Waterways Trust Fund dollars – Defining Lock “Rehabilitation” (IWTF-shared) Threshold

• Project Delivery Reforms

• Study on Additional Revenue Sources/Tax Exempt Bonds

• P3 Pilot Program

• Closure of Upper St. Anthony Falls Lock

• Lock Operations Public Comment

Inland Navigation Key Issues (Continued)

• Annual Financial Plan for High-Dollar Projects • Report on Gulf Intracoastal W’way (NOLA) and

Atlantic Intracoastal W’way (NC) • Contributed Funds for Navigation O&M • Deauthorizations• Dam Operations• Middle Mississippi River habitat pilot program • Cost Share Cap • .06 - .09 Cent/Gallon Increase to Existing Diesel Fuel

Tax

WIN P3: Water Infrastructure Now Public Private Partnership Act

• Separate House, Senate bills Introduced March 14, 2013– S. 566, Sen. Richard Durbin (D-IL) & Sen. Mark Kirk (R-IL)– H.R. 1153, Rep. Cheri Bustos (D, IL-17) & Rep. Rodney Davis (R, IL-13)

• Unanimously Incorporated in both WRDA & WRRDA• Anticipated Authorization via Conference Committee

• Special Panel on Public-Private Partnerships – House T&I Committee, Chaired by Rep. John Duncan (R-TN) and Ranking

Member Michael Capuano (D-MA) – Est. Feb 6, 2014– 6 month duration

Non-Federal Project Implementation Pilot Program

• ASA(CW) “to identify project delivery & cost-saving alternatives”; – “reduce backlog of authorized projects”;

• “Evaluate technical, financial & organizational efficiencies” of non-Federal interests’ actions; – “Design, execution, management & construction” of projects;

• “Alternatives for the decentralization” of project management/design/construction”

• 15 Projects

• Separate Section for same actions pertaining to Feasibility Studies

Non-Federal Pilot Program (Continued)

•15 Projects in “flood risk management, hurricane and storm damage reduction (including levees, floodwalls, flood control channels, and water control structures), coastal harbor and channels, inland navigation, and aquatic ecosystem restoration”

– authorized for construction prior to enactment date; – Not more than 12 of which have received Federal funds prior to enactment– Not more than 3 projects that have not received funding from enactment date to 5-year sunset; – “to the maximum extent practicable, are located in each of the divisions of the Corps of

Engineers”; – 180 days from enactment; – ASA(CW) to “evaluate cost-effectiveness and project delivery efficiency” of allowing non-Fed

partners;

•$125M additional funds authorized to be appropriated to the Secretary to carry out the pilot program ($25M for each of FY14 – FY18.

– Five year sunset to start construction.

WRRDA & Dredging

•S. 601, Sec. 2024: Establishes a study to examine b/c and feasibility of “improved dredging practices and techniques”;•20-year appraisal of dredging needs;•Identification/recommendations to any “impediments to dredging”;

•H.R. 3080, Sec. 201: Spending More of the HMTF taxes received – Up to 80% by 2020 and beyond.

•Authorize Treasury to enter a “non-federal agreement to maintain” a harbor; •“Deep Draft Navigation Planning Center of Expertise” established

– Consolidation of existing USACE resources

WRRDA & Ports and Harbors

•H.R. 3080, Sec. 201: Spending More of the HMTF taxes received – Up to 80% by 2020 and beyond.

•Sec. 211: Study to evaluate HMTF use to maximize “eceonomic growth and job creation” for “low- and moderate-use” ports

– “Low-” <1M tons; “Moderate-” >1M but < 10M tons

•Sec. 206: Authorize Treasury to enter a “non-federal agreement to maintain” a harbor;

•“Sec. 204: Deep Draft Navigation Planning Center of Expertise” established – Consolidation of existing USACE resources

22

Closure of Upper St. Anthony Lock

THE DIESEL TAX (i.e. USER FEE) INCREASEThe Missing Piece

• U.S. House Ways & Means – “Comprehensive”• Included in Chairman Camp’s draft of comprehensive tax reform:

An increase of .06 cents/gal on diesel fuel consumed by commercial vessels while operating on the inland waterways of the United States. (consistent with Rep. Lipinski/Whitfield’s H.R. 1149 WAVE 4 legislation)

• U.S. Senate Finance Committee – “Tax Extender”Request: Include an Increase of .09 cents/gal

(adopt user fee increase as proposed in Sec. 8 of S.407, RIVER Act)

24

prohde@vesselalliance.com

Waterwayscouncil.org