Great Lakes Navigation Update

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1 Great Lakes Waterways Conference Great Lakes Navigation Update Marie Strum U.S. Army Corps of Engineers Great Lakes Navigation Team Leader February 14, 2017 The views, opinions and findings contained in this report are those of the authors(s) and should not be construed as an official Department of the Army position, policy or decision, unless so designated by other official documentation. BUILDING STRONG and Taking Care of People! ISO-9001

2 Great Lakes Navigation Update 2 Funding Status Dredging FY16 and FY17 Program Recent Trends Dredged Material Management Soo Locks Update Outreach Upcoming events District Operations Chiefs Projects of Interest

3 Federal Projects on the Great Lakes A non-linear navigation system with 60 federal commercial projects and 80 federal shallow draft/recreational projects Chippewa Harbor Grand Marais Lake Superior Taconite Silver Bay Eagle Harbor Two Harbors Lac La Belle Knife River Grand Traverse Bay La Pointe DuluthSuperior Keweenaw Waterway Bayfield Big Bay Little Lake Port Wing Presque Isle Marquette Whitefish Point Harbor Grand Marais Soo Locks St. Marys River MI Channels in Straits of Mackinac Detour Manistique Les Cheneaux Island Grays Reef Little Bay de noc CANADA Mackinac Island Mackinac City Cheboygan St. James Hammond Bay Inland Route Petoskey Washington Island Cedar River Charlevoix Menominee WI Oconto Pensaukee Big Suamico Green Bay Ogdensburg Alpena Leland Sturgeon Bay Morristown Greilickville Algoma Harrisville Frankfort Kewaunee Arcadia Cape Vincent Au Sable Harbor Portage Lake Tawas Bay Two Rivers Manistee Manitowoc Sackets Harbor Port Austin Point Lookout Ludington Sheboygan Port Ontario Harbor Beach Oswego Pentwater Saginaw Port Sanilac White Lake Port Washington Muskegon MI Lexington Niagara River Grand River Black River Grand Haven Milwaukee Pine River Holland Kenosha Clinton River Saugatuck St. Clair River Belle River NY Lake St. Clair IL South Haven Waukegan Rouge River St. Joseph Commercial Detroit River St. Joseph River Chicago Harbor New Buffalo Recreational Monroe Bolles Harbor Michigan City IN OH 3 PA

4 Civil Works Transformation: Use Strong Collaborative Relationships Background Regional Team stood up in 2005 Includes port directors, shippers, harbor masters, agencies Establish program priorities regionally and use risk based approach in budgeting Tasks related to budgeting Regional decisions made based on: Developing collaborative needs and risks with stakeholders Define and review functional channels focus scarce dredging funds Dredging Transportation cost savings Infrastructure - Asset Management risk-based needs identified Prepare fact sheets for each harbor Review system interdependency Prioritize based on need and risk understanding that all needs will not receive funding; shared philosophy of making sacrifices for benefit of system (i.e. high use vs. low use) 4

5 Great Lakes Navigation System Interdependent Ports Silver Bay Lake Superior Two Harbors Key Challenges Duluth-Superior Presque Isle Ontonagon Ashland MI Marquette Gladstone >10M Ton Harbor 1-10M Ton Harbor WI <1M Ton Harbor Cheboygan Menominee CANADA Charlevoix Alpena Green Bay Harbor Beach Manistee Ludington Saginaw Manitowoc Muskegon Marysville Grand Haven Milwaukee MI Buffalo Put In Bay St. Clair NY Holland Rouge River Waukegan Detroit River Chicago Harbor St. Joseph Monroe PA Calumet IL IN 5 Balancing System Requirements Dredging Dredged Material Management Harbor Infrastructure Soo Locks OH System approach is key for the Great Lakes Nav System - interdependency

6 WATER RESOURCES REFORM & DEVELOPMENT ACT (WRRDA) The Corps must manage all the individually authorized projects in the Great Lakes Navigation System as components of a single, comprehensive system, recognizing the interdependency of ports The Corps shall not allocate funds solely on tonnage Establishes funding targets for expenditure of HMTF funds for the next 10 years including 10% of priority funds to GL Emerging harbors (less than 1M tons) receive no less than 10% of 2012 HMTF appropriated funds ($898M)

7 WATER RESOURCES REFORM & DEVELOPMENT ACT (WRRDA) 2014 WRRDA14 is an authorization bill; it provides authority or direction to the Corps, it does not provide funding 7 Funding comes from Congressional Appropriations We are awaiting implementation guidance from HQ LegislativeLinks/wrrda2014/wrrda2014_impguide.aspx However, the lack of implementation guidance is not preventing HQ from meeting the intent of the WRRDA criteria related to GL funding and low use harbor funding.

8 GL NAVIGATION FUNDING HISTORY 8 $200,000 $180,000 Executable Backlog Reduction Funding Range NAV O&M and CDF Funds (in $000's) $160,000 $140,000 $120,000 $100,000 Sustainable Funding Range $80,000 $60,000 ARRA Adds and National Provisions President's Budget Fiscal Year

9 DREDGING 9

10 FY16 CORPS FUNDING 10 Congress passed the FY16 Consolidated Appropriations Act; enacted Dec 18, The FY16 Appropriations bill included FY16 President s Budget with some adjustments, plus additional O&M funds for ongoing work to be allocated by USACE HQ Additional Funding for Ongoing Work - Navigation Maintenance $23.5M - Deep-draft harbor and channel $250M - Small, remote, or subsistence nav $48M

11 FY 16 GREAT LAKES NAVIGATION PROGRAM $142.8M Great Lakes Navigation Operations & Maintenance Key Items $59.2M in Dredging (30 projects 4.4M cubic yards) $8.6M in Dredged Material Management $14.6M in Soo Asset Renewal $2.3M Chicago Lock Repairs $7.9M Structure Repair by Contract 11

12 FY16 PROJECTS FUNDED FROM ADDITIONAL FUNDS FOR ONGOING WORK 12 $14.0M Dredging - Alpena, MI - Lorain, OH - Fairport, OH - Monroe, MI - Manistique - Additional funds for Duluth, Green Bay Saginaw, Calumet $10.9M Soo Asset Renewal $1.3M Chicago Lock Repairs $6.2M Structure Repairs (Ludington, Waukegan, Sandusky, Barcelona, Grand Haven)

13 FY16 PBUD + WORK PLAN DREDGING ($59.2M) 13 Duluth-Superior + Green Bay + Erie Indiana Harbor Holland Grand Haven Saginaw River + Ludington Toledo Presque Isle Rouge River Manistee Conneaut Sandusky Cleveland Alpena Fairport Huron Waukegan Burns Harbor Monroe Rochester St. Joseph Muskegon Calumet + Ontonagon Lorain Manistique Manitowoc Oswego

14 FY17 CORPS FUNDING STATUS 14 Awaiting FY17 Appropriation Funding based on FY17 President s Budget at this time If Congress passes an Appropriations Bill, additional funds could be allocated to projects across the country. Funding amounts included in House and Senate markups: Additional Funding for Ongoing Work House Senate - Navigation Maintenance $25.3M $23.5M - Deep-draft harbor and channel $258M $250M - Small, remote, or subsistence nav $50M $48M

15 FY 17 GREAT LAKES NAVIGATION PRESIDENT S BUDGET 15 $102.8M Great Lakes Navigation Operations & Maintenance Key Items $38.4M in Dredging (20 projects 3.2M cubic yards) $8.2M in Dredged Material Management $5.9M in Soo Asset Renewal

16 FY17 Dredging Funding and Dredging Requirements Chippewa Harbor Grand Marais Taconite Silver Bay Lake Superior Two Harbors Knife River Cornucopia Duluth- Superior Port Wing Commercial Recreational WI La Pointe Bayfield FY17 Funded Dredging Keweenaw Waterway IL FY17 Unbudgeted Dredging Need Eagle Harbor MI Green Bay Two Rivers Manitowoc Sheboygan Port Washington Milwaukee Kenosha Waukegan Lac La Belle Grand Traverse Bay Cedar River Menominee Oconto Pensaukee Big Suamico Chicago Harbor Chicago River Calumet Big Bay Presque Isle Marquette Little Bay de noc IN Washington Island Sturgeon Bay Algoma Kewaunee Little Lake Grand Marais Manistique St. James Frankfort Arcadia Channels in Straits of Mackinac Grays Reef Portage Lake Manistee Ludington Pentwater White Lake Petoskey Leland Muskegon Grand River Grand Haven Holland Saugatuck South Haven St. Joseph St. Joseph River New Buffalo Michigan City Whitefish Point Harbor Soo Locks St. Marys River Charlevoix Greilickville Mackinac Island Mackinac City Cheboygan Inland Route Point Lookout MI Detour Les Cheneaux Island Au Sable Harbor Saginaw OH Hammond Bay Alpena Harrisville Tawas Bay Rouge River Detroit River Monroe Bolles Harbor Pine River Clinton River Chnls Lake St. Clair Port Austin Harbor Beach Port Sanilac Lexington Black River St. Clair River Belle River CANADA PA NY Ogdensburg Morristown Cape Vincent Sackets Harbor Port Ontario Oswego 16

17 6.0 Dredging Funding Trends Quantity Dredged (millions of cubic yards) M Annual Reqm t FY07 FY09 FY11 FY13 FY15 FY17 Appropriation - Add'l Funds for Ongoing Work ARRA (Stimulus) L. Superior Regional Provisions Michigan Regional Provisions Commercial Regional Provisions

18 HISTORICAL FUNDING GREAT LAKES LOW USE PROJECTS (<1M TONS) 18 35,000,000 30,000,000 25,000,000 20,000,000 15,000,000 10,000,000 5,000,000 0 FY 09 FY 10 FY 11 FY 12 FY 13 FY 14 FY 15 FY 16 FY 17 President's Budget Workplan/Appropriation

19 19 DREDGED MATERIAL MANAGEMENT

20 DREDGED MATERIAL MANAGEMENT INITIATIVES 20 Engage state agencies and other partners and stakeholders in developing innovative long-term solutions to dredged material management challenges. Foster partnership with USEPA with its Great Lakes Legacy Act (GLLA) and Great Lakes Restoration Initiative (GLRI) programs to leverage funding for projects supporting both environmental goals and navigation benefits. Maximize the use of fill management and facility adaptation, such as routine raising of perimeter dikes and reworking the material within the facility to create additional capacity. Aggressively pursue opportunities for beneficially using dredged material to preserve or create CDF capacity within limits of federal rules Collaborate with partner agencies leveraging local and federal programs to reduce the amount of material entering federal navigation channels sediment traps

21 Current Dredged Material Placement Methods Lake Superior Ontonagon MI St. Marys River Percentages by volume ( ) 4% NEAR SHORE 14% CDF 37% OPEN WATER 45% UPLAND WI Near Shore CDF Open Water Upland Menominee Sturgeon Bay Kewaunee Green Bay Manitowoc Port Washington Milwaukee IL Kenosha Waukegan Calumet Indiana Harbor IN Frankfort Manistee Ludington Muskegon Grand Haven Holland St. Joseph Michigan City Cheboygan Saginaw MI Alpena Rouge River Detroit River OH Lake St. Clair Monroe Harbor Beach St. Clair River CANADA Buffalo Dunkirk Erie PA Rochester NY Oswego

22 LOCK RELIABILITY 22

23 Today 23 It has been nearly 50 years since a new lock was built at the Soo

24 THE SOO LOCKS LYNCH PIN OF THE GREAT LAKES NAVIGATION SYSTEM 70% of the commercial commodities transiting the Soo Locks are limited by size to the Poe Lock Aging and deteriorating infrastructure; unscheduled outages increasing There is currently no redundancy for the Poe Lock The economic impact of a 30-day unscheduled closure of the Soo Locks = $160M Two major efforts are underway to improve reliability of the Soo Locks 1. Maintain existing infrastructure through Asset Renewal Plan 2. New lock with the same dimensions as the Poe Lock Economic reevaluation required. 24

25 SOO LOCKS ASSET RENEWAL PLAN 25 Asset Renewal Plan will maximize reliability and reduce risk through 2035 $76.4M funded to date through FY16. New hydraulics, stop logs, utilities. (Complete) Compressed Air System. (Complete) Poe Gate Anchorage Replacement. (In progress) Mac and Poe Electrical System Replacement. (In progress) Poe Miter and Quoin Block Replacement (FY17 Award) Remaining key priorities. Poe Lock Gate 1 Replacement. Pier rehabilitation Davis Pump Well Funding, $M FY08 FY10 FY12 FY14 FY16

26 MacArthur Lock bulkhead repairs (FY17 work plan funding requested for all bulkheads, in-house repair of 3 bulkheads by Mar 2017) West Center Pier repairs (phase 3&4 complete Dec 2017, phase 5 funded in FY17 PBUD, award Summer 2017/complete Dec 2018, final 1200 feet of wall repair included in MRR) Poe Lock electric system rehab (complete March 2018) Poe Lock Gates 1&3 embedded anchorage replacement (complete Mar 2017, FY17 work plan funding requested for Gate 2) Poe Lock miter/quoin block replacement (in FY17 PBUB, awd Summer 2017/complete Mar 2018) Compensating Works Gate Automation (GLRI funded, complete Dec 2017) Soo Locks Ongoing Construction Efforts

27 Poe Lock Embedded Anchorages 27 Typical Poe Lock Embedded Anchorages Poe Primary Embedded Anchorage Poe Primary Embedded Anchorage Poe Secondary Embedded Anchorage Poe Secondary Embedded Anchorage

28 SOO LOCKS WEST CENTER PIER REPAIRS

29 2 ND POE-SIZED LOCK 29 Authorized for construction of a redundant Poe-size lock in WRDA 1986; WRDA 2007: Construction at 100% federal expense Inconsistent with Administration policy due to BCR of 0.73 computed in 2005 Limited Reevaluation Report (LRR) Currently working on Economic Reevaluation Report to recalculate BCR Team includes all three GL Districts, Planning Center of Expertise for Inland Navigation (Huntington) and the Civil Works Cost Engineering MCX (Walla Walla) Draft report scheduled to be completed December 2017

30 OUTREACH 30 Shallow Draft Stakeholder Meeting Waterways Conference Detroit and virtual, April 4, 2017 GL Nav Stakeholder Meeting after budget released Web Site: Harbor Fact Sheets Updated CDF Fact Sheets Presentations Mailing Lists send information to

31 Great Lakes Navigation System 31 The GL system s savings over the next least costly mode of transportation More competitive American steel Essential to sustaining U.S. auto industry Lower cost energy Lower cost concrete (construction) $3.6 Billion/year More competitive grain for export Less fuel consumption and greenhouse gas emissions Less congested highways/rails

32 Questions? 32