Dredging and Harbor Maintenance Update

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Dredging and Harbor Maintenance Update

Jim WalkerDirector of Navigation Policy and Legislation

American Association of Port Authorities

October 3, 2013

American Association of Port Authorities703.684.5700 • www.aapa-ports.org

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American Association of Port Authorities

Representing Seaports of the Western Hemisphere for over 100 years!

• AAPA was established in 1912• Since that time AAPA has been providing a space

for collaboration and exchange of best practices• Fostering collaboration among members and • allied groups. We do this through:

• Education and Training, PPM• Networking and one on one interaction• Legislative and Policy support• Outreach

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2013 – Quite a Year!• February: State of the Union includes Ports • April: President Obama visits Port of Miami• May: President Obama visits Ellicott Dredges • July: President Obama visits JaxPort• August: President Obama addresses Ports on

Jay Leno show• September: VP Biden visits Maryland Ports,

Baltimore• September: VP Biden visits Savannah• September: VP Biden visits Charleston

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AAPA’s View of the Corps

REGULATORY

CHANNEL DREDGING

PLANNING STUDIES

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Water Resources Guiding Principles1. AAPA advocates for full use of all HMT revenues.2. Funding from HMT revenues first should be used for

historical intended purposes. 3. AAPA is supportive of providing more equity for

HMT donors.4. U.S. Tax Policy should not disadvantage U.S. ports

and maritime cargo.5. The U.S. must have a process to efficiently study

and construct deep draft navigation projects.6. The cost-share formula for maintenance and

deepening should be reflective of the current cargo fleet.

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WRDA – Building SupportHouse Members WRDA Information Push

• What is WRDA• Why is WRDA important to you• WRDA is Essential to America’s Global Trade

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WRDA and Coastal NavigationTopic Senate, S.601 House, H.R. 3080

Authorizations Delegated to ASA(CW) Named 23 projects

Cost Increase, 902 Delegated to ASA(CW) Named 3

Program reforms 3-3-3 3-3-3

Deauthorizations Independent Commission $12B list and new authorizations not started within 7 years

Harbor Maintenance Tax Incremental increases, 80% max

Incremental increases, 100% max

Authorizations: Sabine Neches Waterway, TX; Jacksonville Harbor, FL; Savannah Harbor, GA; Freeport Harbor, TX; Canaveral Harbor, FL902: Miami Harbor, FL

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HMT Revenues and Proposed Funding($ millions)

2013 2014 2015 2016 2017 2018 2019 2020 2021HMT Revenue 1778 1905 2085 2278 2416 2536 2668 2809 2958

S 601 1000 1100 1200 1300 1400 1500 2809 2958 percent 52 53 53 54 55 56 100 100

WRRDA 1156 1276 1439 1617 1764 1902 2134 2247 percent 65 67 69 71 73 75 80 80

HMT Revenue estimates from Corps of Engineer projections WRRDA is computed based on the percentage of the prior years HMT revenues

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WRDA – S. 601 – HMT

FY14 – $1 BIncreases $100 M/yr. through FY19; Full HMT revenues + interest in FY20

Baseline -Corps Budget Development

Process - ($868 M)

Rebates for Donor & Energy

Production Ports - $50 M + 10% of

New Money FY14: ($63.2 M)

Subject to separate Appropriation

New Money -($132 M)

Not from other Corps business lines

High-Use Deep Draft (HUDD) 80%

($106 M)

Great Lakes 20%

($26 M)

Exception: Hazardous Conditions or

Natural Disasters

After HUDD Projects Restored:

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If appropriated amount is greater than FY12 Approp.

90% Corps National DistributionMaintain width & depth for fully loaded commercial vessels to navigate safely; AND Expanded Use - Berths, Contaminated Sediment, and Environmental Remediation

10% Corps District Distribution To Moderate and Low-use Projects

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WRDA – HR. 3080 – HMT

‘Target Appropriations’ FY14: 65% of FY13 HMT up

to 80% in FY 2020

Sec Army may use up to 5% for

Expanded uses

FY 15 and 16 10% to ‘Emerging Harbors’ less than 1 M tons per year

Donor port: HMT revenue exceeds

dredging cost

Sense of Congress: Increased funds not

from other Corps civil works programs

Berth dredging and contaminated sediment

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President’s Budget for Coastal Navigation($ millions)

Investigations Construction O&M MR&T Total

2014 16 108 853 2 9802013 17 151 797 2 9672012 18 283 706 2 8322011 9 115 747 2 878

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… What’s Next?• Get WRDA passed• Press the Administration to fund the Corps in FY15

consistent with the President’s statements of importance (walk the talk)

• Continue the AAPA/Corps Quality Partnership Initiative progress with Policy adjustments

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What will success look like?• Full use of HMT revenues to

fully maintain navigation channels

• A robust navigation studies and construction program

• Channel improvements that allow America to continue its freight movement competitive advantage throughout the 21st century.

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Bottom Line: We need WRDA in 2013 to advance efforts towards accomplishing these goals.

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Recruiting

• Freight movement - relate inland and coastal navigation

• Long term goal: American public understands –

• ‘My job depends on WRDA’