Serving the Nation And Its Defense Presentation to California Marine Affairs & Navigation Conference Mr. Steven L. Stockton, Deputy Director of Civil Works

Serving the NationServing the NationAnd Its DefenseAnd Its Defense

Presentation toPresentation toCalifornia Marine Affairs & Navigation ConferenceCalifornia Marine Affairs & Navigation ConferenceMr. Steven L. Stockton, Deputy Director of Civil WorksMr. Steven L. Stockton, Deputy Director of Civil WorksHQ U.S. Army Corps of EngineersHQ U.S. Army Corps of Engineers9 February 20069 February 2006

One Corps Serving the Army and the Nation

Water Resources –Water Resources –the Situationthe Situation

Water Resources –Water Resources –the Situationthe Situation

•Nation faces large and Nation faces large and growing water resources growing water resources challenges.challenges.•Population pressures, Population pressures, changes in national changes in national priorities and values will priorities and values will fundamentally change fundamentally change how we approach water how we approach water resources problems.resources problems.•Availability of water will Availability of water will likely be single most likely be single most significant factor in our significant factor in our economic prosperity and economic prosperity and quality of life in this quality of life in this century.century.


Corps Role inCorps Role inWater ResourcesWater Resources

Corps Role inCorps Role inWater ResourcesWater Resources

• Ensuring the Nation’s ability to– deliver economic goods and services, while– protecting and sustaining our

environment/ecosystems.• Addressing water resource issues in a

rational, systematic and disciplined way• Tailoring projects to specific physical,

economic, and environmental context • Offering hands-on experience

– Scientific: engineering/economic/ ecological– Governmental: political/public policy


Our Navigation Mission: Vital Our Navigation Mission: Vital to Trade and to Our Economyto Trade and to Our EconomyOur Navigation Mission: Vital Our Navigation Mission: Vital to Trade and to Our Economyto Trade and to Our Economy

MillionTons

Over 100

50 - 100

25 - 50

10 - 25

Houston

Corpus ChristiS. Louisiana

New Orleans

Baton Rouge

Texas City

Lake Charles

PlaqueminesTampa

New York/NJ

Valdez

Long Beach

Beaumont

Norfolk

Lower DelawareRiver (9 harbors)

Duluth/Superior

Los Angeles

Port Arthur

St. Louis

Portland

Seattle

Freeport

Huntington

Richmond

Oakland

Tacoma

Boston

Newport News

Port Everglades

Jacksonville

Memphis

Detroit

Cleveland

SavannahCharleston

Indiana Hbr

Cincinnati

Portland

Two Harbors

Anacortes

Honolulu

Chicago Pittsburgh

Baltimore

Pascagoula

52 harbors – coastal, inland, Great Lakes - handled over 10 million tons each in 2005…

While 196 inland waterway locks and dams support over 600 million tons of commerce annually

Ashtabula

Mobile

New Haven

Matagorda


Key Harbor Improvement Key Harbor Improvement Projects Funded in 06Projects Funded in 06

Houston/

Mobile

New York/NJ

Lwr Delaware R

Los Angeles Main Channel

Oakland 50-ft

Boston

Port Everglades

JacksonvilleBrunswick

Indiana Hbr

Canaveral

Sault Ste Marie(Soo Locks)

Pascagoula

Wilmington

DeLongMtn Hbr

Savannah

Great LakesSystem Study

Corpus Christi

Sabine-

James RVentura Construction /

Design Funds

Feasibility Funds

Under Construction/Study for AdditionalImprovements

Texas City

SF Bay to Stockton

Columbia R

Norfolk

St. Paul Hbr

Kikiaola

Lake Washington

St Petersburg

Nome

Freeport

Brazos Island Hbr

Anchorage

Haines

Searsport

Tampa

Gulfport

27 key deep draft harbor improvements in ’06 appropriation

About $306 million Long-term investment of

over $4 billion

Chignik

Sand PtUnalaska

Akutan

YakutatKaumalapau

Barbers Pt

Iberia

Neches WW

Galveston

Calcasieu R


Why It’s Critical: They’re Why It’s Critical: They’re Steaming to Our Shores to Stock Steaming to Our Shores to Stock

Our StoresOur Stores

Why It’s Critical: They’re Why It’s Critical: They’re Steaming to Our Shores to Stock Steaming to Our Shores to Stock

Our StoresOur Stores

0

40

80

120

160

year 2000 year 2010 year 2020

ca

lls

(th

ou

sa

nd

s)

Tankers

Dry Bulk

Containership

General Cargo

Other

Projected Number of Annual Calls to Projected Number of Annual Calls to and from U.S. Ports by Ship Type:and from U.S. Ports by Ship Type:

Year 2000-2020Year 2000-2020

Source: National Dredging Needs Study, USACE


PacificCoast

4.53.8

14.0

AtlanticCoast

7.4

5.1

17.7

Depth-Constrained Containership Depth-Constrained Containership Calls in 2020, with and without Calls in 2020, with and without

Planned Harbor ProjectsPlanned Harbor Projects(in thousands of ship calls)(in thousands of ship calls)

Under Construction

Under Study

Under Construction/Study for AdditionalImprovements

Harbor Projects in 2006:

Gulf Coast

1.1 1.62.5


FY 2007 BudgetFY 2007 Budget FY 2007 BudgetFY 2007 Budget

Emphasizes 3 critical Corps activities. 1. Construction and completion of projects that will

provide high return on the nation’s investment in commercial navigation, flood and storm damage reduction, and aquatic ecosystem restoration.

2. Increased funding for regulatory program to help protect and preserve Nation’s waters and wetlands.

3. Funds for Corps’ critical emergency preparedness and response mission in regular budget process.

Corps’ focus is on assuring maintenance of critical infrastructure, funding high return studies and construction projects, and continuing best of other ongoing planning and construction efforts within available funds


Civil Works Budget &Civil Works Budget &AppropriationsAppropriations

Civil Works Budget &Civil Works Budget &AppropriationsAppropriations

FY05 FY05 FY05 FY06 FY06 FY07Conference Suppls. Total Approp. Budget Conference Budget

Construction, Gen. 1,782 63 1,845 1,637 2,372 1,555Oper. & Maint., Gen. 1,943 355 2,098 1,979 1,989 2,258Gen. Investigations 143 143 95 164 94Mississippi R. & Tribs. 322 6 328 270 400 278Regulatory 144 144 160 160 173Flood & Coast Emerg. 0 348 348 70 0 81FUSRAP 164 164 140 140 130Gen. Expenses 166 166 162 154 164OASA(CW) 4 __ 4 0 4 0Total 4,668 772 5,440 4,513 5,383 4,733


FY 07 BudgetFY 07 BudgetPriority ProjectsPriority Projects

FY 07 BudgetFY 07 BudgetPriority ProjectsPriority Projects

ComprehensiveEvergladesRestoration

New York-New

Jersey Harbor

OlmstedLock & Dam

Upper Miss.R.Side ChannelRestoration

Missouri RiverFish & Wildlife

Mitigation

Sims Bayou

Columbia River Fish Mitigation

Environmental

Oakland Harbor

Flood Damage Reduction

Navigation


Performance Based Budgeting – Performance Based Budgeting – Which Projects Make the Cut?Which Projects Make the Cut?

Performance Based Budgeting – Performance Based Budgeting – Which Projects Make the Cut?Which Projects Make the Cut?

Performance Measures & Ranking Criteria• Dam Safety• All—Benefit/Cost Ratio, Remaining Benefit/Remaining

Cost Ratio, Time to Complete• Flood Damage Reduction

– People in 100-year flood plain– Average annual damages prevented– Property at risk in 100-year floodplain

• Navigation– Tonnage– Average Annual Benefits

• Environmental Restoration– Loss prevention for significant natural resources– Endangered Species Act & other environmental

compliance needs


Performance Based Budgeting – Performance Based Budgeting – Modifications for FY07Modifications for FY07

Performance Based Budgeting – Performance Based Budgeting – Modifications for FY07Modifications for FY07

• We are NOT departing from Performance Based Budgeting.

BUT • We have enhanced it by adding additional key metrics to

decision making efforts.– People in 100-Year Floodplain – Average Annual Damages– Tonnage– $ Cost/Ton – Average Annual Benefits

• These have been added to overall Remaining Benefit to Remaining Cost Ratio metric in decision making for Flood Control and Navigation business lines


Five-Year Development PlanFive-Year Development PlanFive-Year Development PlanFive-Year Development Plan

• Based on President’s budget and guidance for Civil Works program.

• Presents 5-year plan for FY 2006-10.

• Purpose is to present informed discussion and decision making on program funding.

• Presents how watershed-integrated water resources management will be pursued.

• Performance based - discusses how funding over 5-year period will achieve goals in Civil Works Strategic Plan.


Lean Six SigmaLean Six SigmaLean Six SigmaLean Six Sigma

• Corpswide business transformation initiative• Tool to pursue expertise and organizational

structure required to succeed• Enhanced work environment, job satisfaction,

productivity, efficiency and streamlined processes

• Identification of processes and implementation starts in FY06

• L6 training begins Nov 05 (leadership), continues with facilitators’ training

• Only 4-6 processes a year (due to funding constraints)


Asset (Infrastructure) Asset (Infrastructure) Management Management

Asset (Infrastructure) Asset (Infrastructure) Management Management

• Presidential Executive Order #13327• All Federal infrastructure• Major focus area is identification of “low use”

Federal facilities that may be subject to removal from inventory as savings objective;

• Federal agencies must manage their assets in a sustainable manner.

• Now a major focus area of OMB oversight for all Federal agencies. – OMB now grades each agency quarterly on

two areas (progress and performance) in PMI (Presidential Management Initiatives).


WRDA ’02 ’03 ’04 ’05 ‘06WRDA ’02 ’03 ’04 ’05 ‘06WRDA ’02 ’03 ’04 ’05 ‘06WRDA ’02 ’03 ’04 ’05 ‘06

Civil Works projects usually authorized in Water Resources Development Acts (WRDAs)

No WRDA has passed Congress since 2000 House passed its version of WRDA 2005 Jul 14 (vote of 406-

14) Senate version passed Energy and Public Works Committee

Hopeful for floor action, conference this year WRDA provisions that support improvements to processes:

Peer review Planning improvements Mitigation Technical assistance to States Upper Mississippi River-Illinois Waterway Louisiana Coastal Area Ecosystem Restoration

Working with Congress as they move towards WRDA enactment


Challenges - Current & Challenges - Current & FutureFuture

Challenges - Current & Challenges - Current & FutureFuture

• RELATIONSHIPS– Nation– Congress– Stakeholders & Partners

• MANAGEMENT– Extracting Maximum Benefit from Available $’s

• Changing Directions– Budget Development & Defense– Reprogramming– Continuing Contracts

• FUNDING– Reserve Used Up– $4.5B to Manage a $6B Program– Demand for Projects & Services Exceeds Available

Funding


Where We’re GoingWhere We’re GoingWhere We’re GoingWhere We’re Going

• Watershed-based approach• Multi-party collaborations among all

partners• Emphasis on watershed objectives with

budget priority for comprehensive planning

• Sustainable integration of constructed and natural systems

• Coordinated & standardized data collection and archiving

• Optimized learning/information sharing• Effective leveraging of partners’

resources


Corps Campaign PlanCorps Campaign PlanCorps Campaign PlanCorps Campaign Plan

• Revising policies, practices and processes to provide a more holistic approach to analyzing water resources challenges

• Developing collaborative, effective and efficient approaches that integrate sponsors, stakeholders, Federal and State agency efforts

• Improving our regulatory processes to better balance the demands of sustainable development with environmental protection

• Developing individual and organizational capabilities to produce technically sound solutions to complex water resources challenges


Collaborative PlanningCollaborative Planning EC 1105-2-409, 31 May 05EC 1105-2-409, 31 May 05

Collaborative PlanningCollaborative Planning EC 1105-2-409, 31 May 05EC 1105-2-409, 31 May 05

• Planning studies (recon through feasibility) will be completed in three years.– Collaborative, watershed studies may be granted an

exception to this requirement.• Collaborative planning may recommend a watershed plan

with Corps’ components as well as components to be implemented by other Federal agencies

Plan Selection:• All planning studies will evaluate, display and compare the

full range of alternative plans’ effects across all four Principles and Guidelines’ accounts.

• Plan may be candidate for selection if it has, on balance, net beneficial effects.

• May select and recommend any one of the candidate plans – (ASA(CW) exception needed if not NED or NER plan)

• Selection will consider the beneficial and adverse effects in all four accounts

• Must identify an NED plan (for comparison)


InitiativesInitiatives InitiativesInitiatives

• HQ streamlining and use of Vertical Teams• Delegated post-authorization and

reconnaissance report approval• Planning model improvements and R&D• Environmental Advisory Board and

Operating Principles• Office of Water Project Review• Planning Centers of Expertise• Streamlining Processes• Alliances with State Water Managers• Collaboration with Stakeholders


Alliances with State Water Alliances with State Water ManagersManagers

Alliances with State Water Alliances with State Water ManagersManagers

• Recognize state primacy for water rights

• Become the states’ primary Federal support for state-wide water planning

• Provide technical assistance, data and watershed analysis

• Bring planning and analysis to bear in developing cooperative solutions to water conflicts that avoid litigation and heavy handed regulation


Environmental Operating Environmental Operating PrinciplesPrinciples

Environmental Operating Environmental Operating PrinciplesPrinciples

1. Strive to achieve Environmental Sustainability.

2. Recognize the interdependence of life and the physical environment.

3. Seek balance and synergy among human development activities and natural systems

4. Continue to accept corporate responsibility and accountability

5. Seek ways and means to assess and mitigate cumulative impacts

6. Build and share an integrated scientific, economic & social knowledge base

7. Respect the views of interested individuals & groups


Role of Sponsors & Role of Sponsors & StakeholdersStakeholders

Role of Sponsors & Role of Sponsors & StakeholdersStakeholders

• In planning• In policy development• On project delivery team• As part of ongoing relationships


Other IssuesOther IssuesOther IssuesOther Issues

• Overdepth Dredging Guidance Issued• Impact of Single Overhead Rate on

Regulatory• Impacts of Hurricane Recovery on $’s

and Personnel


Navigation Partner Navigation Partner ConsiderationsConsiderations

Navigation Partner Navigation Partner ConsiderationsConsiderations

• True partnership• Regional economic development • Intermodal linkages• Cost-effective alternatives to rail and

highway transportation• Meeting customer needs and schedules• Increased international

competitiveness• Recreation opportunities• Environmental considerations

Serving the NationServing the NationAnd Its DefenseAnd Its Defense

Presentation toPresentation toCalifornia Marine Affairs & Navigation CouncilCalifornia Marine Affairs & Navigation CouncilMr. Steven Stockton, Deputy Director of Civil WorksMr. Steven Stockton, Deputy Director of Civil WorksU.S. Army Corps of EngineersU.S. Army Corps of Engineers9 February 20069 February 2006

Documents

Serving the Nation And Its Defense Presentation to California Marine Affairs & Navigation Conference Mr. Steven L. Stockton, Deputy Director of Civil Works