2016 International Workboat Conference and Show” · Lead secure lives along the river or...
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BUILDING STRONG ® US Army Corps of Engineers BUILDING STRONG "2016 International Workboat Conference and Show” Mr. Dennis O. Norris, P.E. Chief of Operations Mississippi Valley Division September 2016
Transcript of 2016 International Workboat Conference and Show” · Lead secure lives along the river or...
BUILDING STRONG®
US Army Corps of Engineers
BUILDING STRONG
"2016 International Workboat Conference and Show”
Mr. Dennis O. Norris, P.E.
Chief of Operations
Mississippi Valley Division
September 2016
BUILDING STRONG®
41% of United States
drainage flows through
the heartland of the nation
World’s Largest “Naturally”
Navigable Watershed
2
3rd largest watershed
in the world
2
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The U.S. “Center Coast”
3
“There is on the
Globe one single
spot, the possessor
of which is our
natural and habitual
enemy. It is New
Orleans.” Thomas
Jefferson-1802
“In my judgement,
the recovery of the
Miss. River was
conclusive of the
Civil War. Whatever
power holds that
river can govern this
continent. General
W.T. Sherman-1887
BUILDING STRONG®
U.S. Army Corps of Engineers
Implementation of a
Corps project
requires:
Congressional
authorization
Congressional
appropriation
(funding)
Non-federal
sponsor
Corps Mission:
Deliver vital public
and military
engineering services;
partnering in peace
and war to
strengthen our
nation’s security,
energize the
economy, and reduce
risks from disasters
• Mississippi Valley Division - One of nine division commands
• Oversee 6 Corps districts, encompass all/parts of 12 states
• 1.25 million square-mile drainage basin
• 4,800+ employees, ~$2 billion program in FY 14 4
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U.S. Ports and Inland Waterways:
Vital to our National Economy
95% of all U.S. imports & exports -- about $1.4 trillion
-- move on waterways and/or ports.
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MR&T (SIP) Authorized Work Remaining
Main Stem Levees and Floodwalls:
187 levee and/or floodwall segments below design elevation
Approx. 370 miles total
97 levee segments - confirmed seepage
31 locations - floodwalls that do not meet stability standards
4 floodwalls require additional structural evaluation for stability
2 locations require levee gap closure structures
2 locations require slope paving to protect levee from erosion
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Navigation Benefits
MVD
487 Million tons Annually
$2.7 Billion in Annual
Transportation Savings
2.7 Billion Jobs Supported
$105 Billion in personal
income
8:1 Return on Investment
Baton Rogue to Gulf
#1 Port in the US based
on tonnage
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Explosive Growth in US
Agricultural Productivity
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US Oil Production:
• Consistent increase since 2010
• US was the World #1 producer in 2015 (more than KSA)
US Natural Gas Production:
• US is World #1 producer as of 2014 (more than Russia)
Affects Many Other Industries including Chemical, Plastics, and all
Manufacturing
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Explosive Growth in US Energy Production
BUILDING STRONG®
US Manufacturing Output vs China
Manufacturing Output 1970 - 2009
Explosive Growth in US Manufacturing
$975M Steel Mill at Port of Caddo-
Bossier on Red River in NW LA
completed by 2015
Construction began
Jul 14 on $1.1B Steel
Mill
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Historical Investments by USACE Functional Category 1928 to 2011
Navigation Flood Multipurpose MR&T Dredging
~$18.00 per
person in 2011!
~$56.00 per
person in 1966! ~$70.00 per
person in 1936!
~$9.28 per
person in 1996!
*
2006-2010 Spending includes
post Katrina & ARRA Supplemental’s * 11
Shifting Priorities:
• Completed Major Projects
• Fiscal Pressures
• Environmental Rest/Sust
BUILDING STRONG®
2013 Report Card for
America’s Infrastructure by the American Society of Civil Engineers
Aviation D Ports C
Bridges C+ Public Parks & Recreation C-
Dams D Rail C+
Drinking Water D Roads D
Energy D+ Schools D
Hazardous Waste D Solid Waste B-
Inland Waterways D- Transit D
Levees D- Wastewater D
D+ America’s
Cumulative G.P.A.
A = Exceptional
B = Good
C = Mediocre
D = Poor
F = Failing
Estimated investment needed by 2020 =
$3.6 Trillion BUILDING STRONG® 12
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Mississippi River Watershed
Report Card
D+ Mississippi Watershed
Results
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Deteriorating Infrastructure
Consequences
14
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Lockport Lock Wall Failure
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Strong Infrastructure = Strong Economy
"So, changes in the fiscal monetary mix are essential. They are the
only tools available when the next recession comes, and I would
submit that they are desirable right now.“
"What are the crucial elements of changing the fiscal monetary mix?
One is a substantial increase in public investment. It is insane that
federal investment in infrastructure is now net negative at a moment
when interest rates have never been lower. And precious little is
happening at the state and local level, either. “
► https://youtu.be/fbOcWv-xF6Y?t=14m36s
BUILDING STRONG®
Our infrastructure makes global STABILITY and American
domestic SECURITY and ECONOMIC PROSPERITY possible!
► Our infrastructure is degrading and our infrastructure is
underperforming.
► The United States is under-investing in its infrastructure and the United
States significantly lags other developed nations in its maintenance of
prior investments.
The United States is on an unsustainable glide-path! Something
MUST change!
Additional INVESTMENT in our infrastructure is critical to our
future
Quote: “The best way to predict your future is to create it”
The Bottom Line:
BUILDING STRONG® 18
BUILDING STRONG®
Strong Infrastructure = Strong Economy
"Fourth, related to my first point, this is the moment to be maintaining the
infrastructure we have. The one thing we know — if you look at airports, if you
look at highways, if you look at the water system of Flint, Michigan — it is much
more costly to defer maintenance than it is to do maintenance promptly. It is
every bit as much a burden on my children’s generation to defer maintenance
as it is to issue paper debt, and I promise you that the costs compound far more
rapidly with deferred maintenance than they do with the 13 basis points that
represent the real interest costs of current long-term federal debt.“
"The most important determinant of our long-term fiscal picture is how
successful we are at accelerating the economy’s growth rate in the next three to
five years, not the austerity measures that we implement. People concerned
with our long-term fiscal health should be redoubling their focus on the currently
inadequate growth rate. “
https://youtu.be/fbOcWv-xF6Y?t=17m45s
BUILDING STRONG®
Our people enjoy a quality of life unmatched in the world.
We ...
Lead secure lives along the river or tributary.
Enjoy fresh air and the surrounding fauna, flora and forests while hunting, fishing and recreating.
Travel easily, safely and affordably.
Drink from and use the abundant waters of any river, stream or aquifer.
Choose from an abundance of affordable basic goods and essential supplies that are grown, manufactured and transported efficiently and reliably along and by the river to local and world markets.
Leveraging local citizens’ input, international
dialogue, science, engineering, technology and
public policy
Balancing needs for …
National security, flood control and flood damage reduction
Environmental sustainability & recreation
Infrastructure & energy
Water supply & water quality
Movement of goods; agriculture & manufacturing
The Mississippi watershed is 41% of the US, 31 states, 1.25 million square miles,
over 250 tributaries
join the dialogue, visit:
www.mvd.usace.army.mil/mrc
America’s Watershed: A 200-year working vision An Intergenerational Commitment
BUILDING STRONG®
Nothing is As Easy As It Looks or Sounds
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Backup Slides
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Long Term Civil Works Funding Trends:
Changing the Character of the Corps
0
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7000
8000
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Constr
Invest
Appropriation ($Million in 2012 $)
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Katrina
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MVD Recreation Infrastructure
1,008,789 Land Acres
868,471 Water Acres
5,395 Shoreline Miles
42 Recreation Lake and River Projects
► 852 Individual Project Site Areas
• 3,482 Picnic Sites
• 12,194 Camping Sites
• 230 Trails with 704 miles of trail
• 422 Boat Ramps
• 9,212 Marina Slips
BUILDING STRONG®
MVD Recreation V2N
47,203,852 visits per year
Within 30 miles of Corps lakes
► $1,579,178,000 in visitor spending
► $774,412,000 in sales
► 13,330 jobs
► $280,600,000 in labor income
► $455,525,000 in value added
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Year
Historical Investments by USACE Functional
Category 1928 to 2011
Navigation Flood Multipurpose MR&T Dredging
~$18.00 per
person in the US!
~$56.00 per
person in the US!
~$70.00 per
person in the US!
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The United States:
The Inevitable Empire?
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BUILDING STRONG® 32
Some “Inevitable” Empires British
Empire
Soviet Union
Ottoman
Empire
Roman Empire
Egypt
Napoleon’s
French Empire
Charlemagne
Ming
Dynasty
Philip of
Macedon
Aztec Empire
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BUILDING STRONG® 33
Environmental Operating Principles 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 individuals and groups interested in Corps activities; listen to them actively and learn from their perspective.
BUILDING STRONG® 35
“Waters of the U.S.” Rulemaking
“If it has two hydrogens
and an oxygen…”
• Under Sec. 404, Clean Water
Act, USACE regulates
discharges of dredged and/or fill
material into “Waters of the
United States”
• Definition of “waters of the
United States” subject to much
litigation since 1972 CWA
• Rulemaking necessary to reflect
Supreme Court rulings
regarding jurisdiction
• Corps currently using1986
regulations, clarified by
guidance issued in 2003 and
2008
• Rule finalized on 29 June,
effective on 28 August
• 27 States have Sued
BUILDING STRONG® 36
WRRDA 2014
Water Supply and Reservoirs
Navigation
Non-Federal Implementation
Regulatory (Including 408)
Dam Safety
Levee Safety
Credits
Alternative Financing
Project Development and Delivery
(Including Planning)
Deauthorizations & Backlog Prevention
BUILDING STRONG® 37
Transform Civil Works
Deliver enduring & essential water resource
solutions by applying effective transformation
strategies.
?
BUILDING STRONG®
Deliver Quality Solutions & Services Focus on the Corps’ Business of
Delivering Solutions and
Services -- effectively, efficiently,
reliably, sustainably.
• Keep our commitments – Deliver
projects on time, under budget, and
to requisite quality (public trust &
confidence is a “resource driver”)
• Enhance Technical Competency and methods of delivery (knowledge
management, policies & guidance, review processes, leverage CX’s)
• Consistently Deliver quality solutions (metrics focused on cost, schedule, and
quality
• Restore, protect, & manage our Aquatic Resources (Env’tal goods & services)
• Develop and implement a Climate Preparedness and Resilience roadmap
• Provide Quality Regulatory Decisions in a reasonable period of time
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Deliver Quality Solutions & Services Where We Are Today
•Developing numerous activities to
establish commitments to schedule , cost,
and quality (PMP, QMP, ATR, and BCOE)
•Developing Design Review Checklist to
optimize process
•Continuing to develop Career Maps for employees –
developed in FY13
•FY15-Established E&C Fellows Program
•Updated ER 1110-1-8158: Command Control process for
approval of CX, CS, and Mandatory Centers
•2005-2014; restored 88,700 acres to
less degrades and natural condition
•Provide stewardship to manage, conserve and
protect the natural and cultural resources of
approximately 12 million acres of Corps owned
land
•Completed screening –level vulnerability
assessment for over 1,400 coastal projects
•Evaluating 100 projects classified as having
very high to high vulnerability
•Districts reviewing ETL’s 1100-2-1 and 1100-2-
2 that will be used in the planning, design and
development of future civil works projects
National Wetland Plant List
•Initiated in 1988 and automated in 2012 – used to define
hydrophytic vegetation (one of three parameters used to
delineate federal wetland boundaries
•Updating NWPL
•Over 5,000 users monthly
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COE Recreation Infrastructure
7,829,605 Land Acres
5,630,584 Water Acres
41,193 Shoreline Miles
402 Recreation Lake and River Projects
► 2,697 Individual Project Site Areas
• 33,105 Picnic Sites
• 90,773 Camping Sites
• 2,919 Trails with 9,504 miles of trail
• 3,671 Boat Ramps
• 110,735 Marina Slips
BUILDING STRONG®
COE Recreation V2N
335,293,332 visits per year
Within 30 miles of Corps lakes
► $11,171,123,000 in visitor spending
► $5,682,793,000 in sales
► 90,728 jobs
► $2,046,286,000 in labor income
► $3,296,541,000 in value added
BUILDING STRONG®
https://youtu.be/fbOcWv-xF6Y?t=17m45s
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The “Fourth” R in Transportation
Infrastructure: River Navigation
Paul Rohde Vice President, Midwest Area
Public Policy Association, Diverse Coalition Membership
• Towboat , Tugboat, & Barge Industries
• Manufacturing
• Energy
• Agriculture Community
• Ports & Harbors
• Organized Labor Unions
• Advocates for Reliable & Efficient Transportation!
– Conservation Groups
Advocating the Modernization & Maintenance
of Inland Waterways Infrastructure
Over 60% of all U.S.
agriculture exports move
past New Orleans via the
Mississippi River!
• Navigation Infrastructure = Locks & Dams
• Operations & Maintenance, Rehabilitation Funding Needs
• Push to Finish Ongoing Construction
• Start Modernization of Locks at Priority Locations
• INLAND WATERWAYS TRUST FUND
• Other Inland Navigation Issues
• Dredging, River Markers [Aids to Navigation (AtoNs)] Asian Carp,
Reduced Service for Lock Operations, etc….
• Time-Sensitive Issues
• Low Water Crisis 2012-2013, Emergency Lock Closures, Minimizing
Repairs’ Impacts on Navigation, etc…
Focus of Waterways Council
Challenge:
Out of Sight = Out of Mind
What’s Moving on America’s
Inland Waterways 566.7 Million Tons - $216 Billion Value (2013)
Coal
31.6%
Petroleum & Petroleum Products
25.2%
Chemicals
9.2%
Crude Materials
15.5%
Primary
Manufactured
4.2%
Food & Farm Prod
13.1%
Manufactured
1.1%
All Others
0.2%
What Moves on America’s Inland Rivers?
Agriculture Products
Over 60% of U.S. export grain travels down the Mississippi
River every year
Domestic-use corn, soybeans, wheat and other products
Fertilizer
What Moves on America’s Inland Rivers?
Petroleum 22% of total domestic petroleum shipments
Gas, heating oil, and other petroleum products
350 million tons annually
What Moves on America’s Inland Rivers?
Coal
227 million tons annually
Nearly 25% of coal destined for power plants travels
on our inland rivers
The Antiques Rivershow
Genuine 1930s Technology!
78% of America’s 242
locks and dams will exceed
their design life by 2020.
• 12,000 miles of navigable
inland waterways
• Touching 38 states
• Carrying approx. 566 million
tons of freight annually.
D- Grade American
Society
of Civil Engineers
Infrastructure Report Card
0
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Scheduled Unscheduled Unscheduled Mechanical Breakdown
Lock Unavailability Increasing
CHALLENGES
• New Administration Uncertainty
• Annual Appropriations » Limited, Uncertain
» Role of Inland Waterways Trust Fund
» Strategic Expenditure is Crucial
- Prioritization of O&M, Rehabs, Modernization
• Project Constructions’ Cost Overruns » Nearly 1/3 of Every Dollar Spent Lost by Construction Delays
» Disconnect in Budgeting Process
» Growing Backlog – Will It Ever End?
• Multi-Use Resource = Many Users to Consider » But Commercial Navigation is the Only Entity that Cost-Shares
» Non-Navigation Factors
A Lesson in Cost Overruns
& Need for Project Delivery Reform: Olmsted Locks & Dam
• $775 million: 1988 Authorized Cost
• 6-Year Construction Duration
• Anticipated Inland Waterways Trust Fund Share:
$387.5 million
• $3.099 billion Current Estimate (2024 completion)
• $1.113 billion
cost-share overrun!
• $1.5 billion IWTF
‘blank check’?!
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
Source: U.S. Department of Transportation
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$8 Billion in Backlog Lock Construction
240,000 Construction Jobs to be Created
20-Year Priority Investment
OVER HALF A MILLION JOBS DEPEND ON INLAND RIVER TRANSPORTATION
…and Tens of Thousands of New Jobs – Generating Billions of Dollars into the Economy – Would be Created…
IF We Invest in
the Construction & Rehabilitation of Locks and Dams!
Providing Solutions
• WRRDA 2014
• Inland Waterways Trust Fund • Industry and Stakeholders - Voluntary & Unanimous Agreement: 45% Tax
Increase on Commercial Diesel Fuel
• Provides the Private Cost-Share (50%) for Lock Capital Improvements
• Cost-Share Shift to Finish Olmsted Dam
• Increasing Appropriations:
USACE Civil Works
Funding
FY2008 – FY2016
Annual Construction Funding
Matched by Inland Waterways Trust Fund
+3 More Construction Projects
Project FY 17 Capability General Treasury IWTF
Olmsted $250,000,000 $212,500,000 $37,500,000
Lower Mon $84,700,000 $42,350,000 $42,350,000
Kentucky $39,000,000 $19,500,000 $19,500,000
Chickamauga $37,000,000 $18,500,000 $18,500,000
Total $410,700,000 $292,850,000 $117,850,000
Savings for the Nation! Project Construction
Completion Dates
(Pre-WRDA 2014) vs.Current Timeline
• Olmsted L&D (2024) Now 2020
• Lower Mon 2, 3 & 4 L&D (2027) Now 2023
• Kentucky Lock (2041) Now 2023
• Chickamauga Lock (2051) Now 2024
Membership
Supported
Creating &
Sustaining Jobs for
the Inland Marine
Industry via Reliable
Infrastructure
