USACE GEEZER BRIEF 2001

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Developing Maintaining Our Water Resources
Infrastructure Today and in the Future
National Waterways Conference Gary Loew Chief,
Civil Works Programs Integration Division HQ,
U.S. Army Corps of Engineers
6 November 2008
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TOPICS

• USACE Civil Works Program
• CW Budget Appropriations
• WRDA and other Backlog
• Transition Planning

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Army Corps of Engineers Missions
Plus Homeland Security
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CW Program Scope

• People
• Civilian Employees
• 22,316 (FTE)
• Military 294
• Contractors Unlimited
• Offices
• Divisions 8 Districts 38
• Hundreds of Area, Project, Resident Engineer
  Offices throughout the U.S.
• Funding
• 5.5 billion annually emergency supplemental
  appropriations
• (Not including 1 billion Support for Others)
• No cost to DOD funds or employee ceilings

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FY09 Civil Works Budget

• Supports Presidents Overall Budget Priorities
• Address Immediate Economic Challenges
• Ensure Sustained Prosperity
• Keep America Safe
• Balance the Budget by 2012
• Supports Mission Priorities
• Commercial Navigation
• Flood Coastal Storm Damage
• Reduction
• Aquatic Ecosystem Restoration

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Budget Competition
Reclamation
Reclamation
Reclamation
USACE
USACE
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Civil Works Program TrendsFY00-13
Program (Millions)
Non-Federal Cost Sharing
FUSRAP
Flood Control Miss. R. Tribs.
Support for Others (Reimbursable)
Investigations
Flood Coastal Emergencies Regulatory
Expenses
Operation Maintenance
Construction
Fiscal Year
Current as of Oct 07
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Six FY05-09 Emergency Supplementals
Appropriation
Millions Katrina Other Disasters P.L.
109-62 (FY 05) 400 P.L. 109-148 (FY
06) 2,144 756 P.L. 109-234 (FY 06) 3,651
34 P.L. 110-28 (FY 07) 1,325
283 P.L. 110-252 (FY 08) 1.5
604 P.L. 110-329 (FY 08) 1,500 1,277 P.L.
110-252 (FY 08) 5,761 Subtotal
14,782.5 2,954 Grand
Total 17,736.5

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Budgets Appropriations
FY06 FY07 FY08 FY09

Millions Investigations 95
94 90 91 Operation Maintenance 1,979
2,258 2,471 2,475 Construction 1,637
1,555 1523 1,402 Mississippi River Tribs.
270 278 260 240 Regulatory Program 160
173 180 180 Flood Coastal
Emergencies 70 81
40 40 F.U.S.R.A.P. 140 130 130
130 Expenses 162 164
177 177 ASA(CW) 0 0 0 6 Total Budget
Request 4,513 4,733 4,871
4,741 Appropriation 5,329 5,340 5,592
5,3--? AppngtBudget 816 607 721 650?  
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How Much of the CW Appn is Earmarked?
2005
2006
2008
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Earmarked StudiesInvestigations Appropriation
The Administration and the Congress Disagree on
the Amount Of Planning that should be conducted
by the Corps of Engineers FY08 Investigations
Budget 90,000,000 FY08
Investigations Appropriation
167,261,000 FY08 Investigations Earmarks
96,918,000 Number of Studies Added 207
of Appropriation that was Earmarked
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Investigations Funding History
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Civil Works Business Programs
Flood Damage Reduction
Shore Protection

• 12000 mi. inland waterway
• 926 harbors
• 2.4 M tons of commerce/ year
• 250 M cubic yards dredged/year

• WRDA 86 Sec 1135
• Sec 206 Aquatic Ecosystems
• Everglades
• Coastal Louisiana

• 97 projects protect 284 miles of shoreline
• Use of dredged material from navigation projects

• 383 reservoirs
• 8500 miles of levee
• Prevent 6 in damage for every 1 invested

• 153 projects supply cities
• Including Wash. DC area

• Sec 10, River Harbor Act 1899
• Sec. 404, Clean Water Act 1972
• About 90,000 permit cases processed/year

• 4,330 sites at 456 projects
• 375 M visits/year
• 15 B to local economies

• 75 projects, 20720 MW capacity
• 3 of total US electric energy
• 700M in power sales

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FY09 Budget by Business Line
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Budgeting Metrics

• Main Ranking Criteria for Business Lines
• Flood Risk Mgmt. (FRM) - People in 100-year
  floodplain
• FRM- Flood Risk Index
• FRM, Navigation - Dam safety seepage stability
• FRM, Navigation, Hydropower Benefit/Cost Ratio
• Navigation - Tonnage movements
• Navigation, Hydropower - Risk Assessments
• Environmental - Loss prevention for significant
  natural resources
• All Business Lines New or Continuing Years to
  Complete
• Investigations (Studies) Systems/Watershed
  Elements
• All Construction Endangered Species Act
  compliance needs
• ALL OM - Safety, Caretaker, Compliance,
  Subsistence

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Budget Arithmetic FY09

• Civil Works Budget Ceiling 4,800 mil
• Allocate GE, REG, FCCE, REC, FUSRAP - 900
• Allocate Base OM (75 of required) - 1,800
• Essential Dam Safety - 500
• Assign National Priorities - 400
• Continuing Construction at Base Level - 700
• Planning Studies - 100
• Minimum Essential Allocation - 4,400
• Left for all other CW Projects Programs 400
  mil
• Use the 400 mil to restore project OM to prior
  year levels
• THATS IT!

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Civil Works Value to the Nation
299 Deep Draft Harbors
3 of Nations Electricity 500 M in power
sales
11,000 miles of Commercial Inland Waterways ½
the cost of rail 1/10 the cost of trucks
400 miles of Shore protection Destination for 75
of U.S. Vacations
627 Shallow Draft Harbors
8,500 Miles of Levees
12 Emergency Responses
Stewardship of 11.7 Million Acres Public Lands
100,000 permits Most in 14 days

• US Ports Waterways convey gt 2B Tons Commerce
• Foreign Trade alone creates gt 160 B Tax Revenues

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FY08 Accomplishments

• NAVIGATION
• Maintained 25,000 miles of navigation channels
• Transported 95 of Nations foreign commerce (2.2
  B tons)
• Maintained 240 lock chambers at 195 sites
• Dredged and disposed of 211 million cubic yards
• Progressed on rehab of 14 lock dam projects
• FLOOD RISK MANAGEMENT
• Prevented 18.5 billion in flood losses annually
  for past 5 years
• An average return of 61 on flood damage
  reduction projects
• Implemented Dam Levee Safety Programs
• WATER SUPPLY
• Provided 9.8 mil acre-feet of water from 136
  projects in 25 states
• 14 of Nations personal household needs

• ENVIRONMENTAL STEWARDSHIP
• Restored 18,000 acres of habitat
• 90 is nationally significant
• FUSRAP
• Excavated 185,600 cubic yards of contaminated
  material
• Returned 13 properties to communities
• EMERGENCY RESPONSE
• Responded to 12 FEMA disasters in 20 states
  Midwest Floods

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More FY08 Accomplishments

• CONSTRUCTION COMPLETIONS
• Placed 8 projects into service 70 since 2001
• REGULATORY
• Processed 100,000 permits in average time under
  60 days
• 5,500 individual permits in average 220 days
• 85,000 general permits in average of 35 days
• Replaced 18,000 acres impacted with 36,000 acres
  of mitigation land
• RECREATION
• Hosted 376 million visitor-days at Corps projects
• Supported 100 mil fishing, 9 mil hunting 63 mil
  wildlife watching visits at Corps projects
• Assisted with recovery of 53 species at 133
  projects
• 1,800 recreation sites (41) operated by others

• HYDROPOWER
• 75 Corps/67 NonFed Plants
• 75 billion kilowatt-hours
• 14 of personal household energy requirements
• 1 billion repaid to Treasury
• Completed rehab of two powerhouses in Georgia
  Alabama
• EXPEDITIONARY FORCE
• 800 employees deployed in 4 overseas Districts

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Future Budget Internal Challenges
Dam Safety
Major Rehabilitation of Infrastructure
No for New Projects
Levee Safety
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FY09-13 Five Year PlanEnhanced Plan

• Completions and new funding
• 35 project completions in next 5 yrs
• 360 mil wedge funds (from
• completions) for new projects
• Projects in the queue to be started
• 9 Cat 1 projects with BCR gt 31
• 80 Cat 2 projects with favorable Admin
  position, lt 31
• 130 Cat 3 projects without favorable Admin
  position
• Required-19 bil to complete ongoing, budgetable
  projects 38 bil to complete all ongoing, incl
  Cong Adds
• Few, if any, new starts projected

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WRDA 2007 Public Law 110-114 121 Stat. 1041,
Nov. 8, 2007

• 600 policy provisions
• 900 new projects
• Principles Guidelines revision
• Independent peer review of USACE studies
• Value 22 bil (7 bil for New Orleans area)
• Title I 46 New projects w/Chiefs Reports 145 CAP
• Title II Policy Indep Peer Review PG
  Watershed Plng
• Title III Project specific modifications 46
  deauthorizations
• Title IV 87 specific studies 14 programmatic
  studies
• Title V New projects and modifications
• Title VI Everglades
• Title VII Louisiana Coastal Area
• Title VII Upper Miss and Illinois River Waterway
  System
• Title IX National Levee Safety Program

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External Trends To Watch

• Continuing Pressure on Budget
• Entitlement Programs
• ( Medicare, Medicaid, Social Security)
• Interest on the National Debt
• Cost of Infrastructure Recapitalization
• Improved Inspection Techniques
• Modern Design Standards
• Cost of meeting ESA and other legal requirements
• Cost of Construction Inflating Faster than CPI
• Fuel, Steel, Concrete
• Expanding worldwide demand

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Future Program Initiatives

• Harbor Maintenance Trust Fund (potential revenue
  increase 750 M)
• Inland Waterways Trust Fund (potential increase
  150M 150M 300M)
• Direct Funding of Hydropower by PMAs (potential
  increase 100 M)
• Private Equity Partnerships--?????
• Benefits Assured revenue future planning
  budgeting certainty

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IWTF--PATH FORWARD

• INITIATIVES
• Just-In-Time IWTF Management project funding
• USACE / Industry Program Management Team
• Long-term 20-30 year Capital Plan
• Project Management Improvements
• Risk-based cost and schedule estimating
• Risk management
• Funds management
• Regular Progress Reporting
• Long-term Revenue Plan Matched to Capital Plan

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Coming Attractions

• FY09 Appropriations
• Conference Nov-Mar?
• Budget 4.9 bil
• House 5.4 bil .12
• Senate 5.6 bil 15
• Stimulus Bill
• Nov Jan??
• Capability is the amount a study/project can
  spend in the FY
• Members of Congress will draft a Members
  Request usually within 30 days of Budget Hearing
  in March
• FY10 Budget
• Current Services Budget _at_ FY08 Appn level
• Due in Feb 09
• Bottom up Review with a scalpel

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TransitionWhat should the Water Resources
Community be doing?

• Brief new Members?
• Influence/Follow Key Appointments?
• Projects of Interest--Stimulus, FY09 Appn, FY10
  Budget?
• Review Washington contacts?
• Consider common communications strategy?
• Nothing?

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TransitionStrategic Communications

• What is different about spending for
  infrastructure?
• Infrastructure spending creates jobs and
  stimulates the economy but so does much other
  spending
• It is Investment Returns exceed costs!
• in this nations future
• in economic efficiency and competitiveness
• in quality of life

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How Can We All Contribute?

• USACE Leadership
• Develop Vision, Goals Objectives, Strategic
  Plan
• Be Thought Leaders
• Implement the Strategic Plan
• Administration
• Listen
• Invest in this nations future
• Stakeholders
• Contribute to Vision, Goals, Objectives, Metrics
• Communicate!
• Create national support for water resources
  infrastructure that will serve this Nations
  economic, quality of all life and defense
  needs, today and into the future.

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The Future of Americas Water Resource
Infrastructure

• Create the Future
• Whether you think you can or
• you cant, youre usually right
• Henry Ford

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Discussion