Great Lakes Navigation System Update

Transcription

1 Great Lakes Navigation System Update Marie Strum U.S. Army Corps of Engineers Great Lakes Navigation Team November 12, 2015 US Army Corps of Engineers

2 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 Funding comes from Congressional Appropriations We are awaiting implementation guidance from HQ LegislativeLinks/wrrda2014/wrrda2014_impguide.aspx 2

3 Great Lakes Commercial Harbors Two Harbors Lake Superior >10M Ton Harbor (13) 1-10M Ton Harbor (17) Duluth- Superior Keweenaw Waterway <1M Ton Harbor (30) Presque Isle Soo Locks MI Marquette Channels in Straits of Mackinac St. Marys River Little Bay de noc Grays Reef CANADA Cheboygan Washington WI Menominee Island Charlevoix Alpena Ogdensburg Sturgeon Bay Green Bay Kewaunee Frankfort Two Rivers Manitowoc Manistee Ludington Sheboygan Harbor Beach Oswego Port Washington Muskegon Saginaw MI Milwaukee Grand Haven St. Clair River Kenosha Holland Lake St. Clair NY IL Waukegan St. Joseph Rouge River Detroit River Monroe Chicago Harbor Michigan City PA IN OH 3

4 FY15 Additional Fund Allocations Additional Funding for Ongoing Work - Navigation Maintenance $45M - Deep-draft harbor and channel $165M - Small, remote, or subsistence nav $42.5M - Inland waterways $42M - Other authorized purposes $35M Criteria established by Congress for allocation of national O&M funding: Complete ongoing work to maintain authorized widths and depths Particular emphasis on places with a Coast Guard presence Enhance national, regional, or local economic development Promote job growth or international competitiveness National defense; public health and safety 4

5 FY15 Projects Funded from Additional Funds for Ongoing Work $6.0M Dredging - Rouge River, MI - Burns Harbor, IN - Sturgeon Bay, WI - St. Joseph Harbor, MI - Holland Harbor, MI - Waukegan Harbor, IL $3.3M Soo Asset Renewal $0.59M Chicago Lock Electrical Repair $2.122M Fox Locks Transfer Payment $1.2M Calumet Harbor dredged material management and shoreline protection 5

6 FY 15 Great Lakes Navigation Program $115.7M Great Lakes Navigation Operations & Maintenance Key Items $46.2M in Dredging (21 projects 3.1M cubic yards) $10.3M in Dredged Material Management $8.65M in Soo Asset Renewal $3.1M Emergency Funding Oct 31, 2014 Storm Dredging Muskegon, MI Pier Repair Grand Haven, MI - deferred Total FY15 Program $118.8M 6

7 FY15 Dredging Funding and Dredging Requirements Chippewa Harbor Silver Bay Grand Marais Taconite Lake Superior Two Harbors Eagle Harbor Lac La Belle Knife River Cornucopia Duluth- Superior Port Wing La Pointe Bayfield Keweenaw Waterway Grand Traverse Bay Big Bay Little Lake Whitefish Point Harbor MI Presque Isle Marquette Grand Marais Manistique Channels in Straits of Mackinac Grays Reef Soo Locks St. Marys River Detour Les Cheneaux Island Mackinac Island Little Bay de noc St. James Mackinac City Cheboygan WI Cedar River Menominee Oconto Pensaukee Big Suamico Green Bay Two Rivers Washington Island Sturgeon Bay Algoma Kewaunee Hammond Bay Petoskey Inland Route Charlevoix Leland Alpena Black River Harbor Greilickville Frankfort Harrisville Arcadia Au Sable Harbor Portage Lake Tawas Bay CANADA Ogdensburg Morristown Cape Vincent Sackets Harbor Manitowoc Manistee Point Lookout Port Austin Sheboygan Ludington Pentwater Saginaw Harbor Beach Port Ontario Oswego Port Washington White Lake Muskegon Grand River MI Black River Port Sanilac Lexington Milwaukee Grand Haven St. Clair River Commercial Recreational IL Kenosha Waukegan Holland Saugatuck South Haven Pine River Clinton River Lake St. Clair Rouge River Belle River NY St. Joseph Detroit River FY15 Funded Dredging FY15 Unbudgeted Dredging Need Chicago Harbor Chicago River Calumet IN St. Joseph River New Buffalo Michigan City OH Monroe Bolles Harbor PA 7

8 FY16 Corps Funding Status Awaiting FY16 Appropriation Funding based on FY16 President s Budget at this time 8

9 FY 16 Great Lakes Navigation $111.6M Great Lakes Navigation Operations & Maintenance Key Items $49M in Dredging (25 projects 3.4M cubic yards) $8.4M in Dredged Material Management $3.7M in Soo Asset Renewal 9

10 FY16 President s Budget Dredging Projects Beaver Bay Grand Marais Chippewa Harbor Lake Superior Two Harbors Eagle Harbor Lac La Belle Knife River Cornucopia Duluth- Superior Port Wing La Pointe Bayfield Keweenaw Waterway Grand Traverse Bay Big Bay Little Lake Whitefish Point Harbor MI Presque Isle Marquette Gladstone Grand Marais Manistique Channels in Straits of Mackinac Grays Reef Soo Locks St. Marys River Detour Les Cheneaux Island Mackinac Island WI Little Bay de noc Washington Cedar River Island Menominee Oconto Pensaukee Sturgeon Bay Big Suamico Algoma Green Bay Kewaunee Two Rivers St. James Mackinac City Cheboygan Cross Village Hammond Bay Petoskey Inland Route Charlevoix Leland Alpena Black River Harbor Greilickville Frankfort Harrisville Arcadia Au Sable Harbor Portage Lake Tawas Bay CANADA Ogdensburg Morristown Cape Vincent Sackets Harbor Manitowoc Manistee Point Lookout Port Austin Sheboygan Ludington Pentwater Saginaw Harbor Beach Port Ontario Oswego Commercial Recreational Port Washington Milwaukee Kenosha White Lake Muskegon Grand River Grand Haven Holland Saugatuck MI Black River Pine River Clinton River Lake St. Clair Port Sanilac Lexington St. Clair River Belle River NY President s Budget IL Waukegan Chicago Harbor Chicago River Calumet IN South Haven St. Joseph St. Joseph River New Buffalo Michigan City OH Rouge River Detroit River Monroe Bolles Harbor PA 10

11 Quantity Dredged (millions of cubic yards) Dredging Funding Trends Appropriation - Add'l Funds for Ongoing Work ARRA (Stimulus) M Annual Reqm t L. Superior Regional Provisions Michigan Regional Provisions Commercial Regional Provisions Energy & Water Adds President's Budget 0.0 FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16

12 Today 12

13 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 alternate transportation cost of a 30-day unscheduled closure of the Soo Locks = $160M 13

14 Reliability Improvement Paths Asset Renewal Maximize reliability and reduce the risk of catastrophic failure through 2035 Work began in 2007 and would be complete in 2019 with optimal funding Critical issues O&M funded as needed Current major reliability concerns on both Poe and MacArthur Locks Major Rehabilitation Preparation of a Poe Lock Major Rehab Report (MRR) underway Feasibility study requiring 3 years and $2M to complete $500k received in FY14; $1.0M in FY15; $500k scheduled for FY16 Ultimately funded through Construction General (CG) if approved Construction of a Poe-Sized Redundant Lock Originally authorized in Limited Reevaluation Report (LRR) resulted in BCR of 0.73 Economic Reevaluation Report will reanalyze benefits and costs 14

15 Funding, $M Soo Locks Asset Renewal Long-Term Plan Asset Renewal Plan will maximize reliability and reduce risk through 2035 $47.2M funded to date through FY14 New hydraulics, stop logs, utilities Compressed Air System Gate Anchorage Replacement Mac Lock Controls Replacement Remaining key priorities Poe Miter and Quoin Block Replacement Poe Electrical Rehabilitation Poe Lock Gate 1 Replacement Pier rehabilitation Funded Requirements 0 FY08 FY10 FY12 FY14 FY16 FY18

16 Major Rehabilitation Report Efforts First step was an SQRA (Semi Quantitative Risk Assessment), conducted in summer 2014 with a report completed in Used for portfolio ranking and determination of whether further and more detailed analysis is necessary Purpose is to identify Probable Failure Modes that warrant further analysis Four primary concerns were identified: West Center Pier Embedded Anchorages Mis-mitering of gates Gas line leak or break in deep service tunnel 16

17 New Poe-Size Lock WRDA 2007: Construction at 100% federal expense Inconsistent with Administration policy due to BCR of 0.73 Conducted a partial benefits reanalysis to determine if some benefit categories were not captured or if insufficient information was used. Completed in Dec

18 2005 New Lock BCR Issues Reliability and unmet demand were not considered in the 2005 BCR calculation Assumption that 100% of commodities would be delivered in an extended outage is not possible Rail lines, rail cars, locomotive capacity were all assumed as sufficient, which is not true according to rail industry Most steel mills cannot even receive iron ore by rail There would be a significant unmet demand in an extended outage Assumption of Poe Lock major overhaul in 2017 not accurate due to constrained funding Probabilities of component failures have increased; and we have better risk assessment tools through Asset Management Assumption of new vessels being Mac Lock sized is no longer true; new vessels will be Poe-restricted 18

19 Economic Reevaluation Report The outcome of Partial Benefits Analysis in 2014 was that a level 3 Economic Reevaluation Report (ERR) is warranted as described in Civil Works Policy Memorandum Economic data is > 5 yrs old A reprogramming request was submitted to HQ in May 2015 for $1.3M to fund the ERR Specialists from several Districts will be involved along with the Planning Center of Expertise for Inland Navigation (Huntington) and the Civil Works Cost Engineering MCX (Walla Walla) The entire ERR process is expected to take 24 months from the receipt of funds 19

20 Asset Renewal Path Forward Summary Continue to fund asset renewal through normal O&M budget procedures Major Rehabilitation Report (MRR) Complete necessary further refinement of reliability of critical components and continued economic modeling with FY15/16 funding New Lock - Economic Reevaluation Report (ERR) Will take a fresh look at Benefits as well as Costs Will utilize all information prepared during the first two years of MRR work including information summarized in the SQRA 24 months to complete report and all reviews from receipt of funding; looking for ways to gain efficiencies. 20

21 Questions 21