HARBORS & NAVIGATION COMMITTEE AND QPI MEETING SEP 27 28, 2018

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1 1 HARBORS & NAVIGATION COMMITTEE AND QPI MEETING SEP 27 28, 2018 Thomas P. Smith, PE, SES Chief, Operations and Regulatory Division HQ U.S. Army Corps of Engineers Washington, D.C. 27 September 2018

2 We aspire to remain a WORLD-CLASS organization, now and into the future, by setting the professional standard and stepping-up as a reliable Federal option. Perhaps the MOST STRATEGIC thing we can do is to simply DELIVER OUR PROGRAM with exceptional quality, on time, and on budget. 2

3 3 USACE Navigation Mission Provide safe, reliable, efficient, effective and environmentally sustainable waterborne transportation systems for movement of national security needs, commerce, and recreation.

4 4 USACE Navigation System U.S. Marine Transportation Industry Supports ~ $2 Trillion in Commerce Annually More than 48% of Consumer Goods Bought by Americans Pass Through Harbors Maintained by Corps. Over 1.3 Billion Short Tons of Foreign Goods Moved Through U.S. Ports/Waterways in 2015 Over 900 Million Short Tons of Domestic Goods Moved Thru U.S. Ports/Waterways in % of U.S. Domestic Freight Carried by Water 239 Lock Chambers at 193 sites 13,000 Miles of Coastal and Deep Draft Channels 12,000 Miles of Commercial Inland and Intracoastal Waterways 1,067 Coastal, Great Lakes and Inland Harbors 40 States are directly served by USACE Channels & Waterways Seattle Tacoma Kalama Vancouver Portland Pasco Lewiston Clarkston Umatilla Sacramento Stockton Oakland Los Angeles Long Beach San Diego Honolulu Anchorage Duluth-Superior St. Paul La Crosse Albany Boston Milwaukee Toledo Dubuque Chicago Pittsburgh New York / Quad Cities Indiana Hbr New Jersey Omaha Philadelphia Parkersburg Cincinnati Kansas City Huntington Baltimore Mt. Vernon St. Louis Louisville Norfolk Paducah Nashville Tulsa Memphis Knoxville Morehead City Wilmington Chattanooga Little Rock Decatur Vicksburg Birmingham Charleston Shreveport Baton Rouge Savannah Lake Charles Pascagoula Jacksonville Houston Panama City Texas City Mobile Tampa Freeport Port Arthur Gulfport Matagorda Beaumont Plaquemines New Orleans Port Everglades Corpus Christi S. Louisiana Miami Brownsville San Juan

STORM / FLORENCE UPDATE 5 No change in port status for North Carolina as of 1330 26 Sept 2018. Navy divers were on site and successfully dove on the obstruction below MOTSU (near Wilmington Harbor).

5 STORM / FLORENCE UPDATE 5 No change in port status for North Carolina as of Sept Navy divers were on site and successfully dove on the obstruction below MOTSU (near Wilmington Harbor). The obstruction was identified as a large bolder in the middle of the channel. The Navy is currently developing a removal plan. The Navy divers plan to move up the river to inspect additional obstructions in the upper harbor. Manteo/Oregon Inlet (12 /14 ) Project is open with caution due to the potential for AtoNs being off station Rollinson Channel (12 ) Project is open with caution due to the potential for AtoNs being off station Silver Lake Harbor (12 ) Project is open with caution due to the potential for AtoNs being off station Federal Navigation Port/Project Status (Authorized Depth ft): Open 1 Open w/caution 5 Closed 0 Wilmington Harbor (42 ) 9/20/18 Port opened with 35 draft restriction and daylight hours only transit; Vessels over 35 must coordinate with COTP New River Inlet (6 ) Project is open with caution due to the potential for AtoNs being off station Morehead City Harbor (45 ) 9/19/18 Port has returned to prestorm operations.

6 FY18 Appropriation = $1.56B for Top 50 Navigation Projects 6

7 CONSTRUCTION PROJECTS IN FY18 REGULAR APPROPRIATION 7 Columbia R. at Mouth Mud Mtn. Dam 70 Columbia R. Fish Mitigation ($10 M or More) Fargo-Moorhead Soo Locks Hamilton City Yuba R. Basin 50 Sutter Basin 31 American River 26 Folsom Dam 98 Flood Risk Management Aquatic Ecosystem Restoration Navigation FUSRAP Multipurpose 10 Stockton 58 Isabella Dam Santa Ana River Mainstem Missouri R. Fish & Wildlife Recovery Upper Mississippi River Restoration McCook & Thornton Res. Iowa Army Ammunition Plant12 44 LaGrange L&D 10 Swope Park 14 Olmsted 175 Lock & Dam Miss. R. Dikes Miss. R. Levees Miss. R. Channel Improvement 27 Kentucky L&D Atchafalaya Basin 16 Brays Bayou Buffalo Bayou San Antonio R. 15 & Tribs. Channel Improvement 20 Corpus Christi Ship Channel St. Louis 40 E. Br. Clarion R. Luckey 19 Lake Zoar Levee 10 Monongahela L&D 2, 3, 4 25 Rough R. Lake Center Hill Lake Comite R. 76 Sarasota- Lido Key Boston Hbr. 67 Chickamauga Lock 109 Maywood Raritan Basin 14 Delaware R. Poplar Island Savannah Hbr. 16 Jacksonville Hbr Charleston Hbr. 28 Brevard County Fire I.- Montauk 10 Lynnhaven Inlet Herbert Hoover Dike S. Fla. Ecosystem Restoration Numbers in circles = $million budgeted

8 CONSTRUCTION IN FY19 BUDGET 8 Columbia R. at Mouth $10 M or more. Actual funding for these and other projects to be determined in FY19 appropriation Mud Mtn. Dam 46 Columbia R. Fish Mitigation 35 Yuba River Basin 42 American River 118 Isabella Lake 15 Santa Ana River Missouri R. Fish & Wildlife Recovery Lower Miss. R. Mainstem (MR&T) Upper Mississippi River Restoration 26 Olmsted Lock & Dam St. Louis Luckey E. Br. Clarion R. Lake 40 Rough R. Lake 29 Center Hill Lake Boston Hbr. 15 Maywood DuPont Poplar Island Flood Risk Management Lewisville Dam Savannah Hbr. Aquatic Ecosystem Restoration Navigation FUSRAP Multipurpose Buffalo Bayou & Tribs Corpus Christi Ship Channel Herbert Hoover Dike S. Fla. Ecosystem Restoration Numbers in circles = $million budgeted

9 CONSTRUCTION PROJECTS IN FY18 SUPPLEMENTAL APPROPRIATION (TOTAL: ~$15B) 9 S. San Francisco Shoreline 13 Yuba R. Basin 1566 American River Folsom Dam Tule R., L. Success Isabella Dam Kansas City Cedar Rapids Lower Mud R. Martin 80 Johnson Co Bluestone Lake 20 McDowell Co. Ala Wai Canal Santa Ana River 161 Mainstem Construction Projects - Projects Cleared July Ongoing (PPA Amendments) Miss, R. Channel Improvement 99 Miss, R. Channel Improvement Lewisville Lake 91 Dallas Floodway 223 Dallas Floodway Extension 53 Brays Bayou 74 Hunting Bayou Clear Creek Lower Colorado R Non-Ongoing (PPA Negotiations) - Surveys and Design Getting Underway - Sponsors ROW and Relocations 3957 Grand Isle W. Shore L. Pontchartrain 53 Sabine Pass to Galveston Bay White Oak Bayou 14 Bois Brule 1552 Comite R. E. Baton Rouge 16 Mill Creek Colleton Co. Rio de la Plata 25 Edisto Isl. Rio Grande Tybee Isl. 13 de Loiza Rio Grande de Arecibo 83 Rio Guanajobo at Mayaguez 60 St. Johns Co. 36 Rio Nigua at Salinas60 Flagler Co Rio Puerto Nuevo Herbert Hoover Dike 20 St. Lucie Co. Manatee Co Palm Beach Co. 158 Dade Co. (Numbers in Circles = Current Working Estimate)

10 FY 19 Appropriation for Navigation ($millions) 10 Description Funding Increase Navigation O&M: General $ 24 Deep Draft Harbors & Channels $ 475 Inland Waterways $ 40 Small Remote & Subsistence $ 54 Donor & Energy Transfer Ports $ 50 Other Authorized Purposes* $ 50 Navigation Investigations $ 25 Navigation Construction $ 509 From IWTF $ 111 Navigation MR&T: Dredging $ 5 Other Authorized Purposes* $ 40 Total Navigation Increases in 2019 Omnibus Act $1,292 *Funding will be split between multiple Business Lines

11 HARBOR MAINTENANCE TRUST FUND DONOR AND ENERGY TRANSFER PORT PROVISIONS 11 WRRDA 2014 Section 2106 and WRDA 2016 Section 1110 definitions for Donor and Energy Transfer Ports and Funding to be distributed from the HMTF Direct Payments to Importers based on the value of the discretionary cargo (maritime cargo for which the US port of unlading is different than the US port of entry) For Expanded Uses defined in Section 2010(f) of the WRDA 1986, such as dredging of a berth that is accessible to a federal navigation project, maintenance dredging of legacy contaminated sediment, environmental remediation related to dredging berths and federal channels. Annual reporting requirements by the USACE to Congress on how the funds were expended in the previous year and the benefits achieved.

12 HARBOR MAINTENANCE TRUST FUND DONOR AND ENERGY TRANSFER PORT PROVISIONS 12 Donor Ports: Long Beach, CA * Los Angeles, CA Miami, FL New York/New Jersey, NY & NJ* Seattle, WA Tacoma, WA Medium-Sized Donor Ports: Port Everglades, FL Port Hueneme, CA San Diego, CA Energy Transfer Ports: Mobile, AL Long Beach, CA * Baton Rouge, LA Lake Charles, LA New Orleans, LA Plaquemines, LA South Louisiana, LA Baltimore, MD New York/New Jersey, NY & NJ* Beaumont, TX Corpus Christi, TX Houston, TX Texas City, TX Norfolk, VA * The ports of Long Beach and New York/New Jersey qualify as both donor ports and energy transfer ports. Section 2106(b)(2)(B) prohibits ports from receiving funds as both a donor port and an energy transfer port, and both ports have elected to receive funds as a donor port.

OLMSTED LOCK AND DAM 13 Activity Description HWS 2017 Start and Finish Dec-17 Jan-18

2018 Dec-18 Jan-19 Feb-19 1 L&D 52 Wicket Hole Repair and Wicket Maintenance 2/1/2018

to Operate L&D 52 as First Priority During Low Flow Conditions 3 4 5 6 7 8 9 Olmsted

Function Testing and Commsisioning Attempt Olmsted Operations if Catastrophic Failure

Cutting Ceremony Olmsted Operations begins (Upon Completion of Training) Dec-17 *

USACE Operations 7/15/2018 10/31/2018 Training and Wicket Testing 8/6/2018 *

13 OLMSTED LOCK AND DAM 13 Activity Description HWS 2017 Start and Finish Dec-17 Jan-18 Feb-18 Mar-18 Apr-18 May-18 Jun-18 Jul-18 LWS 2018 Aug-18 Sep-18 Oct-18 Nov-18 HWS 2018 Dec-18 Jan-19 Feb-19 1 L&D 52 Wicket Hole Repair and Wicket Maintenance 2/1/2018 L&D 52 Hole Repair and Maintenance 2 L&D 52 Operational Priority 6/15/2018 Continue to Operate L&D 52 as First Priority During Low Flow Conditions Olmsted Dam Functional Completion (ACHIEVED) Olmsted Wicket Lifter (OWL) Delivery OWL Function Testing and Commsisioning Attempt Olmsted Operations if Catastrophic Failure at L&D 52 USACE Operations Training and Wicket Testing (Low Water*) Olmsted Ribbon Cutting Ceremony Olmsted Operations begins (Upon Completion of Training) Dec-17 * 2/15/2017 6/15/2018 7/15/2018 Olmsted Functional if 7/15/ /31/2018 L&D 52 Fails USACE Operations 7/15/ /31/2018 Training and Wicket Testing 8/6/2018 * 11/1/2018 * OWL T&C Olmsted 'Operable' LOW RISK MODERATE RISK HIGH RISK Olmsted Lock and Dam - Open for Business

14 14 EO 13807/ PROGRAM STREAMLINING USACE Program Execution 56,000 written authorizations - 94% General Permits (85% w/in 60 days) - 6% Individual Permits (58% w/in 120 days) 35,000 jurisdictional determinations Nationwide and Regional General Permits are an important efficiency and environmental protection tool Data from FY 17 USACE Streamlining Initiatives: Lead District established with single point of contact for projects crossing multiple states and districts Synchronized Section 404/10 and Section 408 Strategy Section 408 decisions delegated to districts; reduced scope of project reviews RGL allowing mitigation credits to be generated for dam removal and culvert replacements Desired government-wide concurrence of undertaking for NHPA purposes

15 IMPLEMENTATION GUIDANCE FOR EO / USACE REGULATORY PROGRAM 15 Emphasis on coordination prior to Notice of Intent: Permitting Timetable 3 rd Party Contractor Cooperating agency Increased electronic info access for scoping review and DEIS feedback Emphasis on dispute resolution process Accountability systems through Federal Agency Portal

CIVIL WORKS PLANNING PROCESS 16 EO 13807 2 year timeline NOI District commander transmittal of final report/feis USACE

16 CIVIL WORKS PLANNING PROCESS 16 EO year timeline NOI District commander transmittal of final report/feis USACE Implementation Guidance for Feasibility Studies establishes the EO timeline within a 3 year feasibility study timeline

SECTION 1122 OF WRDA 2016 BENEFICIAL USE OF DREDGED MATERIAL PILOT PROGRAM Section 1122 of WRDA 2016 directs the Corps of Engineers to establish a pilot program consisting of 10

the Secretary shall carry out the pilot program in a manner that Maximizes the beneficial placement of dredged material from Federal and non-federal navigation channels; 17

mobilization of dredges and related equipment, including through the use of such efficiencies in contracting and environmental permitting as can be implemented under existing laws

17 SECTION 1122 OF WRDA 2016 BENEFICIAL USE OF DREDGED MATERIAL PILOT PROGRAM Section 1122 of WRDA 2016 directs the Corps of Engineers to establish a pilot program consisting of 10 projects for the beneficial use of dredged material. the Secretary shall carry out the pilot program in a manner that Maximizes the beneficial placement of dredged material from Federal and non-federal navigation channels; 17 Incorporates, to the maximum extent practicable, 2 or more Federal navigation, flood control, storm damage reduction, or environmental restoration projects; Coordinates the mobilization of dredges and related equipment, including through the use of such efficiencies in contracting and environmental permitting as can be implemented under existing laws and regulations; Fosters Federal, State, and local collaboration; Implements best practices to maximize the beneficial use of dredged sand and other sediments; Ensures that the use of dredged material is consistent with all applicable environmental laws. WRDA 2016 is an authorizing document and does not provide appropriations

18 SECTION 1122 PROJECT PURPOSES AND SELECTION 18 Project Purposes: 1) Reducing storm damage to property and infrastructure; 2) Promoting public safety; 3) Protecting, restoring, and creating aquatic ecosystem habitats; 4) Promoting recreation; 5) Stabilizing stream systems and enhancing shorelines; 6) Supporting risk management adaptation strategies; and 7) Reducing the costs of dredging and dredged material placement, such as projects that use dredged material for: Construction or fill material; Civic improvement objectives; and Other innovative uses and placement alternatives that produce public economic or environmental benefits Project Selection (Sec1122(b)(3): select projects solely on the basis of ) The environmental, economic, and social benefits of the projects, including monetary and nonmonetary benefits, and The need for a diversity of project types and geographical project locations

19 SECTION 1122 PROPOSAL SUMMARY Proposals received: Representing 29 states and one territory (Puerto Rico) All Major Subordinate Commands All major water bodies Variety of project purposes, beneficial use techniques, and benefit types Projects varied significantly in scope Varying level of detail provided in proposals

20 Questions? 20

TOTAL DOMESTIC TRADE RANK TOTAL FOREIGN TRADE

TOTAL DOMESTIC TRADE RANK TOTAL FOREIGN TRADE U.S. PORT RANKING BY CARGO VOLUME 2016 Short Tons FOREIGN TRADE TOTAL TRADE TOTAL DOMESTIC TRADE RANK IMPORTS EXPORTS TOTAL FOREIGN TRADE RANK RANK RANK RANK PORT/STATE TONS PORT/STATE TONS PORT/STATE