Achievement in Advocating for Higher Investment in the Inland Waterways. Michael J. Toohey, President/CEO, WCI Rail Supply Chain Summit
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1 Achievement in Advocating for Higher Investment in the Inland Waterways Michael J. Toohey, President/CEO, WCI Rail Supply Chain Summit June 15, 2016
2 WCI s three-legged stool approach to advocacy to achieve outcomes: DIRECT LOBBYING GRASSROOTS MEDIA 2
3 OUTCOMES AND ACHIEVEMENTS WRRDA was signed into law by President Obama on June 10. Meanwhile, many of America s businesses ship their goods across the country by river and by canal, so we ve got to make sure that those waterways are in tip-top shape. President Obama, June 10, 2014
4 WRRDA incorporates elements of the Capital Development Plan: Prioritize navigation projects Reforms to project delivery process Federalize Olmsted cost-share Define major rehabilitation from IWTF
5 USER FEE INCREASE = INCREASED INVESTMENT WCI had long urged an increase to the Inland Waterways Fuel User Fee by 6- to 9-cents/gallon on diesel fuel consumed by commercial vessels while operating on the inland waterways of the U.S. Only in Washington... In the last act of the lame duck session of Congress (2014), a 45% increase to our user fee (to 29-cents-per-gallon) was passed as part of the Tax Increase Prevention Act of 2014.
6 Keeping our Inland Waterways Systems Thriving: Will Protect Over 541,000 American Jobs Investing in America s Inland Waterways Keeps the Economy and Jobs Afloat In 2010, the Inland Waterways Users Board approved and adopted a report prepared by a Corps of Engineers-industry team of experts titled, Inland Marine Transportation System (IMTS) Capital Projects Business Model Report that proposed a series of navigation system investments over a 20-year period. For the purposes of the university study, these 21 lock and dam projects were examined, but on an accelerated 10-year completion basis. At a cost of only $8 billion to finish all projects in the CDP...
7 Stakeholder Support (NESP)
8 Congressional Support (NESP)
9 Congressional Support (Major Rehab)
10 Stakeholder Support (P3 toll proposal) Opposition Letter Signed by 75 U.S. manufacturers, farmers, wholesalers, retailers, importers and exporters, ports, shipyards, labor, national and regional organizations, State agencies, and transportation and logistics providers who say NO to tolls or lockage fees on the inland waterways transportation system... AEP River Transportation Alabama State Port Authority Amherst Madison, Inc. American Commercial Barge Line American Iron and Steel Institute American Petroleum Institute AWO Archer Daniels Midland Company Blessey Marine Services, Inc. Brownsville Marine Products, LLC Bunge North America C&B Marine Campbell Transportation Company, Inc. Canal Barge Company Cargill Caterpillar, Inc. CF Industries CGB Enterprises, Inc. Channel Shipyard Company Chicago Regional Council of Carpenters CHS, Inc. Coalition of Alabama Waterways Association Cooper T. Smith Crounse Corporation Deloach Marine Services, LLC FirstEnergy Corp. Golding Barge Line, Inc. Gulf Intracoastal Canal Association Hunter Marine Illinois Corn Growers Association Illinois Marine Towing Indiana Corn Growers Association Indiana Soybean Alliance Ingram Barge Company Iowa Corn Growers Association JB Marine Services, Inc. Kentucky Corn Growers Association Kirby Corporation LaFargeHolcim Louisville Gas and Electric Company and Kentucky Utilities Marquette Transportation Company, LLC McNational, Inc. Michigan Corn Growers Association Minnesota Corn Growers Association Missouri Corn Growers Association Mulzer Crushed Stone, Inc. Murray American Transportation, Inc. National Association of Manufacturers National Association of State Departments of Agriculture National Corn Growers Association National Council of Farm Cooperatives National Grain and Feed Association National Oilseed Processors Association Ohio Corn & Wheat Growers Association Parker Towing Company, Inc. Pine Bluff Sand & Gravel Company Port of New Orleans Port of Pittsburgh Commission Southern Towing Company St. Louis - Kansas City Carpenters Regional Council Tennessee River Valley Association Tennessee-Cumberland Waterways Council Tennessee-Tombigbee Waterway Development Council The Fertilizer Institute Trinity Marine Products, Inc. Turn Services United Association Upper Mississippi Waterway Association Upper River Services, LLC Valero Warrior Tombigbee Waterway Association Waterways Association of Pittsburgh WCI Wepfer Marine, Inc. Wisconsin Corn Growers Association
11 Funding Outcomes: Annual Corps Civil Works Budget...
12 Inland Waterways Trust Fund...
13 Operations & Maintenance...
14 Olmsted L/D Construction (2024) NOW 2022 Lower Mon 2,3 & 4 Replacement, phase 1 (2027) NOW 2023 Kentucky Lock Addition (2041) NOW 2023 Chickamauga Replacement Lock (2051) NOW 2024 L/D 25 Upper MS 1200 Lock Addition (2064) NOW 2032 High Island to Brazos River, TX (2053) NOW 2018 Lagrange 1200 Lock Addition (2070) NOW 2028 L/D 22 Upper MS 1200 Lock Addition (2083) NOW 2035 L/D 24 Upper MS 1200 Lock Addition (2090) NOW 2038
15 National Outcomes: Taxpayer Savings Major Rehab Completion Dates (Pre- & Post-WRRDA) Key Projects: L/D 25 Upper MS Dam (2053) NOW 2030 Lagrange (2064) NOW 2018 ILL WW Thomas O Brien L/D (2065) NOW 2023 Greenup Dam Rehab PED & Constr. (2079) NOW 2031
16 CHALLENGE: Aging Infrastructure
17 CHALLENGE: The Trouble with Aging The 12,000 miles of our navigable inland waterways system touch 38 states and carry approximately 565 million tons of freight annually. The 242 locks and dams are maintained and operated by the U.S. Army Corps of Engineers. The oldest of these, the Elizabeth Lock and Dam (L/ D#3) in Pittsburgh, opened to traffic in 1906, but most were built in the 1930s and 40s. The aging infrastructure as a whole is in critical need of modernization, without which the inland waterways system will cease to provide reliable freight transportation capacity.
18 Challenge: Public Private Partnerships WRRDA Directive: at least 15 P3 from Corps Civil Works Mission Focus (WRDA 2016) on Illinois Waterway: either for major rehabilitation and/or 2 new 1200 locks Toll or lockage fee $42M $277M/year depending on option selected Corps lacks authority to charge tolls, fees, taxes (WRDA 16 target provision) Action: Opposition to tolling/lockage fees to pay for P3
19 2016 Goals and Objectives Goal: Fiscal Year 2017 (FY 17) Energy and Water Appropriations of the full amount supportable by diesel fuel tax going into the Inland Waterways Trust Fund Objective: FY 17 funding of $225 million for Olmsted Lock and Dam with cost sharing of 85% General Fund / 15% Inland Waterways Trust Fund Objective: FY 17 funding of at least $167 million for other inland waterways priority capital projects including at least $66 million for Lower Mon Locks and Dams, $52 million for Kentucky Lock and Dam, and $19 million for Chickamauga Lock and Dam and $28 million for LaGrange Lock Rehabilitation.
20 2016 Goals and Objectives Goal: Obtain Funding in FY 2017 for NESP Objective: PED funding of at least $10 million to continue pre-construction engineering and design (PED) for those locks where PED has already begun Goal: FY 17 increase in overall Corps Civil Works Program O&M funding (FY 16 received $3.137 billion), including increased funding for the Navigation mission (FY16 received $2.3 billion) Objective: FY 17 appropriations of at least $800 million for inland waterways O&M Objective: FY 17 Energy and Water appropriations of the full amount targeted in WRRDA 2014 from the Harbor Maintenance Trust Fund Objective: Evaluation of Corps nationwide assessment of O&M priorities for inland waterways transportation system
21 2016 Goals and Objectives Goal: Increase the threshold of when a project is considered major rehabilitation Objective: The Inland Waterways Trust Fund cost shares the construction of new projects as well as major rehabilitation projects on the inland waterway system. WCI is advocating that the appropriate major rehabilitation threshold should be changed from $20 million to $50 million in WRDA 2016
22 2016 Goals and Objectives Goal: Authorize Calcasieu Lock, Louisiana, Chief s Report in WRDA 2016 Goal: Complete Corps project study & approval process on all inland waterways navigation projects without unreasonable delays or deviations from established procedures so that all projects may be considered for authorization by Congress at earliest opportunity Goal: Support AWO s Unlock Our Jobs coalition efforts, to control invasive species on the inland waterways system
23
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