Great Lakes Navigation Stakeholder Meeting

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1 Great Lakes Navigation Stakeholder Meeting Mike O Bryan U.S. Army Corps of Engineers Great Lakes Navigation Business Line Manager April 9, 2014 US Army Corps of Engineers

2 Great Lakes Navigation Meeting Great Lakes Navigation Program - Trends and Key Issues - FY13 Accomplishments - FY14 Navigation Program - FY15 President s Budget - Soo Locks Reliability Mike O Bryan/Marie Strum District Operations Chiefs Josh Feldmann Key Project Updates Dave Wright Steve Hungness Legislative Update Steve Fisher Jim Weakley 2

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

4 Trends/Key Issues Interdependent Ports Silver Bay Two Harbors Duluth-Superior Ontonagon Ashland Lake Superior Presque Isle MI Marquette Total Tonnage for 8 Harbors 95.8M tons System Approach gaining traction WRDA Efforts Underway HMTF >10M Ton Harbor 1-10M Ton Harbor <1M Ton Harbor WI Gladstone Menominee Green Bay Manitowoc Cheboygan Charlevoix Alpena Manistee Ludington Saginaw Harbor Beach CANADA Appropriations Additional Funds for Ongoing Work Milwaukee Waukegan Chicago Harbor Calumet IL IN Muskegon Grand Haven MI Holland Rouge River Detroit River St. Joseph Monroe St. Clair OH Marysville Put In Bay PA Buffalo NY Stakeholder communication to LRD and HQ increasing 4

5 FY 13 Accomplishments Great Lakes Navigation $85.9M Great Lakes Navigation O&M Key Items in FY13 Budget $31.0M in Dredging (15 projects - 2.4M cubic yards) $12.0M in Dredged Material Management $3.1M in Soo Asset Renewal No Appropriation from Congress Year Long Workplan Modest decreases 1-10% due to sequestration Additional funding for emergency dredging at Saginaw No other additional projects funded with Corps regular budget Hurricane Sandy added 22 dredging, 7 structure repair projects; 7 State of MI funded dredging 5

6 FY14 Corps Funding Status Congress passed the FY14 Consolidated Appropriations Act; enacted Jan 17, The FY14 Appropriations bill included FY14 President s Budget plus additional O&M funds for ongoing work allocated by USACE HQ. 6

7 FY 14 Great Lakes Navigation O&M $94.9M Great Lakes Navigation Operations & Maintenance Key Items in FY14 Appropriation $39.9M in Dredging (18 projects 3.1M cubic yards) $10.6M in Dredged Material Management $1.6M in Soo Asset Renewal Additional Funding for Ongoing Work - Navigation Maintenance $ 25.72M - Deep-draft harbor and channel $ 128M - Inland waterways $ 42M - Small, remote, or subsistence nav $ 40M 7

8 FY14 Corps Funding Additional Allocation Final allocation was announced on March 4. $23M was applied to Great Lakes Navigation projects. Dredging: $13.8M additional funds for dredging o 12 new projects, 6 projects received additional funds (FY14 total 30 projects, $44M) Soo Locks Asset Renewal $5.5M Chicago Lock gate winches $853K Black Rock Lock gate rehab $1.1M Port Washington structure repair $950K 8

9 Named Projects in FY14 Appropriation Dredging Funding Duluth-Superior Green Bay Calumet Indiana Harbor Holland Grand Haven Saginaw River Detroit River Toledo Sandusky Cleveland Buffalo Fairport Lorain Waukegan Burns Monroe St. Marys River Red text projects received additional funding 9

10 FY 14 Additional Dredging Funding Low Use Projects Black River, Port Huron, MI Cheboygan Erie Huron Irondequoit Bay Kewaunee La Pointe Leland Manitowoc Menominee Rochester St. Joseph 10

11 FY14 Dredging Funding and Dredging Requirements Chippewa Harbor Grand Marais Taconite Silver Bay 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 Commercial Recreational Port Washington White Lake Muskegon Grand River MI Black River Port Sanilac Lexington FY14 State of MI Funded Dredging FY14 Sandy Funded Dredging FY14 Funded Dredging IL FY14 Unbudgeted Dredging Need Milwaukee Kenosha Waukegan Chicago Harbor Chicago River Calumet IN Grand Haven Holland Saugatuck South Haven St. Joseph St. Joseph River New Buffalo Michigan City OH Pine River Clinton River Lake St. Clair Rouge River Detroit River Monroe Bolles Harbor St. Clair River Belle River PA NY 11

12 FY 15 Funding Great Lakes Navigation $102.5M Great Lakes Navigation President s Budget O&M Key Items in FY15 President s Budget $39.2M in Dredging (16 projects - 2.7M cubic yards) $9.8M in Dredged Material Management $5.35M in Soo Asset Renewal - FY15 GL Navigation O&M President s Budget is 28% greater than the FY12 President s Budget 12

13 FY15 President s Budget Dredging Projects Chippewa Harbor Beaver Bay Grand Marais 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 13

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

15 Current Dredged Material Management Conditions DREDGED MATERIAL MANAGEMENT STATUS MINNESOTA Two Harbors Duluth Superior Ashland Lake Superior Keweenaw Waterway Ontonagon Presque Isle Marquette Grand Marias Channel in Straits of Mackinac St. Marys River Critical Dredged Material Management issues could severely restrict channel availability within 2 years Pressing Dredged Material Management issues could severely restrict channel availability within 10 years. No pressing issues within next 10 years; continue to work on long range planning such as DMMPs. Little Bay de Noc Grays Reef Cheboygan WISCONSIN Menominee Charlevoix Alpena Frankfort ANNUAL DREDGING REQUIREMENT (CY) Green Bay Manitowoc Kewaunee Manistee Ludington MICHIGAN 800K 100K 250K 50K 95K <50K Sheboygan Port Washington Milwaukee Kenosha Waukegan Chicago River & Harbor Calumet ILLINIOS Muskegon Harbor Grand Haven Holland St. Joseph Harbor INDIANA Saginaw Toledo Detroit River Rouge River Monroe St. Clair River Harbor Beach Channels in Lake St. Clair CANADA OHIO PENNSYLVANIA NEW YORK 15

16 Dredged Material Management Initiatives Initiatives underway to reduce requirements/increase efficiencies: Leverage EPA funding from Legacy Act and GLRI (both dredging and dredged material management) Work with states and local sponsors on finding beneficial uses of dredged material and reuse for CDF material Work with states on acceptability of testing protocols for open lake placement 16

17 Soo Locks Reliability 17

18 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 Crib Dam construction Compressed Air System Mac Lock modernization design Funded Requirements Remaining funding required $69 million over 5 years Poe and Davis Pump Well Valves Poe Electrical Rehabilitation MacArthur Interlocks and Controls Upgrade Funding, $M FY08 FY10 FY12 FY14 FY16 FY18

19 New Replacement Lock WRDA 2007: Construction at 100% federal expense Inconsistent with Administration policy due to BCR of 0.73 Currently conducting a partial benefits reanalysis to determine if some benefit categories were not captured or if insufficient information was used. If there is a large enough increase in benefits, a BCR revisit may be in order. 19

20 Benefits Analysis Status Evaluate potential benefits which might impact the BCR Review to be completed by the end of FY14 by contract Involving industry throughout the assessment Survey of top shippers/operators that move coal and iron ore through the locks. Determine how a closure would affect businesses, what their response would be, and what costs would be associated with that response. Incorporate updated probabilities of failure combined with costs to the users to determine possible impacts on project benefits.

21 Expert Elicitation Meeting March 2014 Brought industry together with Corps What would you do in significant unscheduled Poe Outage? Options discussed: increased shipping through Escanaba, Lightering through MacArthur Lock, rail to a transloading facility below the locks, foreign commodity sourcing, and trucking Results: Lightering promising but can only handle 40-50% iron ore None of the identified closure alternatives- either singly or in combination- were capable of meeting 100% of the demand None of these alternatives would be immediately available in the event of a closure Because of the lack of alternate modes, a significant unscheduled outage would have severe adverse impacts on industry

22 Peaking & Ponding New Superior Regulation Plan expected 2014 Expect to see gates open more of the year (fewer gates at ½ gate setting) but also max amount of gates open will be less Moderates chances of drastic changes from month to month Ponding allowed if U.S. Slip > m Peaking/ponding can cause rapid changes in water levels downstream of locks Chance to review peaking & ponding criteria Opportunity to discuss impacts and propose modifications

23 23

24 24

25 25

26 6 MAR % ice coverage Most severe since nd on record after % (2014)

27 Ice Impacts to Shipping Ice conditions in late Dec/early Jan slowed down traffic significantly to end the season Worst ice conditions in recorded history caused many problems at season opening. Locks opened March 25; first vessel locked through April 4 First time since 1994 no vessels at opening of season Convoy took 9 days to travel from Duluth to the Soo, as opposed to typical hours. Impacts to power plants, steel mills Other impacts to industry? Need feedback on alternate modes considered, general cost impacts

28 Mackinaw locking through March 21,

29 Ice rubble field in Whitefish Bay from the Mackinaw - March

30 Chicago Lock Ice Conditions 30 BUILDING STRONG

31 Communication Great Lakes Brochure Web Site: Fact Sheet Books available today/updated on website Presentations Mailing Lists send information to 31

32 Key Great Lakes Contacts GL Navigation Business Line Manager Mike O Bryan (313) Marie Strum (313) Shamel Abou-El-Seoud - Chicago Operations Chief (312) Josh Feldmann - Buffalo District Operations Chief (716) Dave Wright - Detroit Operations Chief (313)

33 Questions? 33

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