Southern Region Summer Meeting. Discussion Session

Transcription

1 The national advocate for the tugboat, towboat and barge industry. Southern Region Summer Meeting Discussion Session September 1, 2010 Beau Rivage Resort & Casino 875 Beach Boulevard Biloxi, MS 39530

2 Table of Contents Agenda 4 Discussion Session Issues: Public Affairs: AWO Member Volunteer Form 6 Asian Carp: AWO Comments: Environmental Assessment of Alternative Technologies 7 AWO Gratified by Supreme Court Ruling 10 AWO Newsletter: MI Lawsuit Dismissed 11 AWO Comments: Schedule for Rotenone Application 12 AWO Comments: Security Precaution for Rotenone Application 14 AWO Comments: edna Sampling 16 AWO Newsletter: AWO Testifies before Chicago City Council 18 AWO Newsletter: 77-Mile Safety Zone in Chicago-Area Waterways 19 No Asian Carp Found in Chicago Area Waterways 20 AWO Newsletter: No Asian Carp Above Electric Barrier 21 AWO Newsletter: Safety Zone Comments 22 Massachusetts Lawsuit: AWO Applauds Summary Judgment Against MA Law 24 MA Sued Over 2009 Oil Spill 25 AWO Newsletter: US District Court Strikes Down MA Law 26 AWO Newsletter: MA Appeals Summary Judgment Order 28 Vessel General Permit: AWO Newsletter: Briefing Schedule for VGP Litigation 29 VGP 401 Certification Conditions 30 2 of 43

3 AWO Memorandum: AWO Free Flow Power Working Group 31 Inland Waterways Capital Development Plan: IWUB Adopts Final Report 32 AWO Newsletter: IWUB Approves Inland Waterways Modernization 35 AWO Newsletter: Users Board Chairman Testifies 36 AWO Newsletter: Capital Development Plan Supports US Jobs 37 AWO Newsletter: Users Board Chairman Urges Plan Adoption 38 Supporters 39 Notes Page 43 Southern Region Summer Meeting Discussion Session September 1, of 43

4 AGENDA 4 of 43

5 The American Waterways Operators Southern Region Summer Meeting Discussion Session Beau Rivage Hotel Biloxi, MS September 1, :00 p.m. 5:00 p.m. Call to Order Mr. Robert A. Fry, Jr., Kinder Morgan Ship Channel Services Safety Briefing Mr. Franklin Morton, Turn Services AWO Political Program: Connecting the Dots Mr. Thomas A. Allegretti, The American Waterways Operators AWO 21: Achieving Goal 1 - Public Affairs Ms. Jennifer A. Carpenter, The American Waterways Operators Maintaining Navigation: The Asian Carp Situation Ms. Lynn M. Muench, The American Waterways Operators Hurricane Evacuations & Flood Protection Projects in New Orleans Mr. Mark A. Wright, The American Waterways Operators AWO Litigation: Status, Prospects and Plans Mr. Thomas A. Allegretti, The American Waterways Operators Vessel General Permit and 401 Certification Compliance Forum Ms. Jennifer A. Carpenter, The American Waterways Operators Ms. Angie A. Fay, Blessey Marine Services, Inc. Mr. Matthew Holzhalb, E.N. Bisso & Son Mr. Ed Shearer, Ed Shearer & Associates Inland Waterways Capital Development Plan Mr. Thomas A. Allegretti, The American Waterways Operators Open Discussion Mr. Robert A. Fry, Jr., Kinder Morgan Ship Channel Services Adjournment Mr. Robert A. Fry, Jr., Kinder Morgan Ship Channel Services 5 of 43

6 Achieving AWO 21, Goal 1 AWO Member Volunteer Form Please indicate on this form the actions you would be willing to take to help achieve AWO 21, Goal 1. Thank you for your active participation! Name Company Address Work Phone Cell Phone Participate in an editorial board visit Author an opinion-editorial piece drafted by AWO Write a letter to the editor of a local newspaper Host a site visit for a reporter Be available for media interviews (Please indicate any particular issue expertise below) Anne Davis Burns Phone: (703) , Ext. 252 Fax: (703) aburns@vesselalliance.com 6 of 43

7 March 19, 2010 Mr. Peter Bullock U.S. Army Corps of Engineers Chicago District 111 N. Canal St. Suite 600 Chicago, IL RE: Planned Environmental Assessment Interim Report IIIa Fish Deterrent Barriers, Illinois and Chicago Area Waterways Dear Mr. Bullock: The American Waterways Operators (AWO) is the national trade association for the tugboat, towboat and barge industry. We represent more than 300 member companies in an industry of nearly 4,000 towing vessels, more than 27,000 dry and liquid cargo barges and over 30,000 mariners. Fifteen AWO members have headquarters in Illinois, and many others operate vessels that transit through Chicago area waterways. We appreciate this opportunity to comment on the U.S. Army Corps of Engineers plans for an Environmental Assessment (EA) of technologies designed to prevent the invasion of Asian carp into Lake Michigan. AWO members have demonstrated their full commitment to protecting the ecosystems of the Great Lakes and the Western Rivers through their cooperative work with the Corps and the U.S. Coast Guard to build, test and maintain the electric dispersal barriers in the Chicago Sanitary and Ship Canal (CSSC) over the past several years. We are committed to continue that work as the long-delayed Barrier IIB is installed this summer and fall. Additionally, AWO has recently provided written comments to the U.S. House Committee on Transportation & Infrastructure, Water Resources & Environment Subcommittee, as well as the Illinois Senate Environment Committee. Both of these comments included recommendations on methods to prevent carp entry while preserving the waterborne commerce that is essential to the region. Consistent with the positions expressed in these documents, we strongly encourage the Corps and the other federal agencies to implement technologies that hold the promise of preserving the natural The Tugboat, Towboat and Barge Industry Association 7 of 43

8 Planned Environmental Assessment Page 2 resources of the Great Lakes and the Western Rivers, while not harming the Chicago area economy. AWO endorses the three technologies being examined by the Corps. The technologies have had success in other parts of the world and will provide the much needed redundancy to the electric barriers. Recent marine literature indicates that acoustic deterrents have become common tools for addressing the impacts on fisheries. Current research has also shown that air bubble curtains and strobe lights, when used together, have been found to increase avoidance for various species of fish, making them an effective exclusion barrier. Given the Asian carp s sensitivity to motion and sound, logic would indicate that these technologies are ideal in not allowing the carp to move into Lake Michigan while other agencies develop biological controls. Stakeholders of both the inland river system and the Great Lakes, therefore, have much to gain by pursuing the methods to which the Corps has pointed. AWO encourages the Corps to work with a variety of stakeholders to identify the appropriate locations for the barrier placements. Unfortunately, given the limited comment period, we are unable to provide suggestions today with great certitude. However, based on the current focus on lock locations, we would suggest that the barriers be considered on the river side of the Lockport, O Brien and Chicago locks. The Corps might also consider barriers on the south side of the electric barriers in the CSSC. This federal action is truly a win-win for the environment and the economy. The industry is pleased to see the Corps move ahead so quickly on a real solution that addresses both its navigation and environmental missions. The continued movement of waterborne commerce will also benefit the regional environment, as barges emit fewer pollutants, including carbon dioxide, and have greater carrying capacity than any other mode of transportation. Air quality and traffic patterns for residents and businesses will clearly be helped by the Corps approach of keeping waterborne commerce moving while installing this critical redundancy in the system. In order to ensure that the importance of the waterways to the region is taken into account, AWO recommends that the EA take into consideration all primary, secondary and tertiary social and economic impacts. AWO appreciates the Corps tireless work in seeking a solution to the problem of invasive species while recognizing the great economic and environmental benefits that barge transportation provides to the nation. Choosing between protecting the environment and preserving commerce is a false choice. Corps consideration of these additional deterrent barriers is the type of federal action that makes that clear. We thank the Corps for the opportunity to comment on this planned action. AWO would be happy to provide further comments after having the time to assess these options more carefully. Attached to these comments please find: a) an affidavit that AWO submitted to the U.S. Supreme Court in the case of Michigan v. Illinois; b) the opening statement submitted by 8 of 43

9 Planned Environmental Assessment Page 3 AWO representative Del Wilkins of Canal Barge Company for a February 9 U.S. Congressional hearing on the Asian carp issue; c) supplementary comments presented to the Committee holding the February 9 hearing; and, d) comments that AWO submitted to a January 21 Illinois Senate hearing on Asian carp. Sincerely, Lynn Muench 9 of 43

10 FOR IMMEDIATE RELEASE April 27, 2010 Contact: Anne Burns (703) or Lynn Muench (314) AWO Gratified by Supreme Court Ruling Against Closing Chicago Locks WASHINGTON, D.C. The American Waterways Operators (AWO), the national trade association for the tugboat, towboat and barge industry, hailed the U.S. Supreme Court decision announced yesterday to deny the State of Michigan s motion to close Chicago area locks. AWO is gratified that the Supreme Court s action will keep waterborne commerce flowing and will avoid the devastating impact that closing the locks would have on Midwest consumers and the hard-working Americans employed in the towing industry and other industries that rely on commodities shipped by barge. The benefits of barging go beyond the fact that it is the safest, most economical way to ship cargo. Barging has the smallest carbon footprint of all transportation modes and is the most environmentally friendly way to move critical commodities, reducing traffic congestion and air pollution. AWO has endorsed nine actions other than lock closures put forward by a federal agency consortium in its Asian Carp Control Strategy Framework that should be implemented to stop the Asian carp. AWO remains committed to working in partnership with the U.S. Army Corps of Engineers, EPA, the U.S. Coast Guard, the White House Council on Environmental Quality, and other federal and state agencies to prevent the spread of Asian carp into the Great Lakes while ensuring the free flow of essential commerce. ### 10 of 43

11 U.S. Supreme Court Dismisses Michigan Lawsuit to Close Chicago- Area Locks May 7, 2010 On April 26, the U.S. Supreme Court dismissed Michigan s request to reopen a 1922 decision, Wisconsin v. Illinois, that allows water to flow from Lake Michigan into the Chicago and Calumet Rivers. Had Michigan s case been heard, it may have forced the closures of the O Brien and Chicago locks. As reported in the AWO Letter, the Court rejected two requests from Michigan to close these locks on an emergency basis in January and March. Michigan was joined by other Great Lakes states in these attempts. The U.S. Solicitor General and the state of Illinois have opposed all of these attempts, and AWO submitted an affidavit in support of Illinois position. This latest decision by the Supreme Court removes the issue from the Court s jurisdiction. As of this writing, Michigan has not sought action in another venue. AWO is committed to working with Congress, the U.S. Army Corps of Engineers and other federal and state agencies to ensure the continued safe movement of commercial traffic while preserving the Great Lakes ecosystem. AWO has endorsed a variety of alternatives to control and mitigate the impact of Asian carp. For a list of these alternatives and for the current state of this issue, please click here. To read about the latest developments with regard to navigation in the area, please see the Cal-Sag Channel story on page 10. For more information, please contact Lynn Muench at (314) , or via at lmuench@vesselalliance.com, or Benjamin Rogers at (703) , extension 264, or via at brogers@vesselalliance.com. 11 of 43

12 May 14, 2010 Mr. Marc Miller Director Illinois Department of Natural Resources One Natural Resources Way Springfield, IL RE: Schedule for Rotenone Application Dear Director Miller: The American Waterways Operators (AWO) is the national trade association representing the inland and coastal tugboat, towboat and barge industry. Fifteen AWO members have headquarters in Illinois, and many others operate vessels that transit through the Chicago Area Waterway System (CAWS). Since the electric fish barrier in the CAWS was proposed and installed in the early 2000 s, AWO and its member companies have worked with federal and state agencies, including the U.S. Coast Guard, the U.S. Army Corps of Engineers, the Environmental Protection Agency (EPA), and the Illinois Department of Natural Resources, to prevent the introduction of invasive species into the Great Lakes while ensuring that critical goods continue to move on the waterways to, from and through the Chicago region. The industry s cooperation on this matter extended to the rotenone application that took place in the CAWS in December 2009, which involved the closure of the waterway and an interruption in waterborne commerce. Industry was told that the short notice given for the December closure was due to the fact that the rotenone had to be applied before the cold weather began, as it is more effective in warm water. It was announced on May 3 that the CAWS will be closed in mid May during another rotenone application, but now the industry is being told that the agencies must rush this operation as the water continues to increase in temperature. The industry also cooperated during the electro-fishing that took place on the CAWS in December, which also necessitated a closure of the waterway. The Tugboat, Towboat and Barge Industry Association 12 of 43

13 Director Miller Page 2 AWO is very concerned that while industry has made every effort to collaborate and work with the state and federal agencies on this issue, our two simple requests to reduce negative impacts to our customers are again not being addressed with this new announcement of another rotenone application. The two requests are: 1. Provide a 30-day notice before any closure of the CAWS. Industry needs at least 30 days to plan to move its equipment out of CAWS and to plan how to move goods for its customers around the closure. If the rotenone truly works best in warm water, then its application should be delayed into the summer, thereby giving the industry its needed advance notice. 2. Provide the firm start and end dates of the closure, indicating the last possible day that the CAWS will be closed. Several agencies announced that the closure would begin on May 21. However, during a conference call on May 12, the date was changed to May 20, thereby giving the industry even less time to move its equipment and increasing the chance that equipment will be trapped in, below or above the CAWS until the rotenone application is complete. This will result in customers not receiving or delivering needed supplies via the waterways. If state and federal agencies are serious about working in cooperation with stakeholders, we request that the start date of this new kill and capture be rescheduled to allow for at least 30 days advance notice and that a firm timeline be provided. We look forward to your timely response. Sincerely, Lynn M. Muench Cc: Mr. Bill Bolen, U.S. Environmental Protection Agency RDML Mike Parks, U.S. Coast Guard MG John Peabody, U.S. Corps of Engineers Mr. Charlie Wooley, U.S. Fish and Wildlife Service Dr. Leon Carl, U.S. Geological Service Dr. Marc Gaden, Great Lakes Fishery Commission Dr. John Dettmers, Great Lakes Fishery Commission Mr. Patrick Carey, City of Chicago Mr. Edward Staudacher, Metropolitan Water Reclamation District of Greater Chicago 13 of 43

14 May 17, 2010 Mr. Marc Miller Director Illinois Department of Natural Resources One Natural Resources Way Springfield, IL RE: Security Precautions before and during Rotenone Application Dear Director Miller: The American Waterways Operators (AWO) is the national trade association representing the inland and coastal tugboat, towboat and barge industry. Fifteen AWO members have headquarters in Illinois, and many others operate vessels that transit through the O Brien Lock. Since the electric fish barrier in the Chicago Area Waterway System (CAWS) was proposed and installed in the early 2000 s, AWO and its member companies have worked with federal and state agencies, including the U.S. Coast Guard, the U.S. Army Corps of Engineers, the Environmental Protection Agency (EPA), and the Illinois Department of Natural Resources, to prevent the introduction of invasive species into the Great Lakes while ensuring that critical goods continue to move on the waterways to, from and through the Chicago region. The industry s cooperation on this matter extended to the rotenone application that took place in the CAWS in December 2009, which involved the closure of the waterway and an interruption in waterborne commerce. The industry also cooperated during the electro-fishing that took place in the Cal-Sag Channel during this same period, which also necessitated a closure of the waterway. As the towing industry and its customers prepare for another closing in mid-may to allow for an additional rotenone application, we ask you to ensure the outcome of this process is valid and will provide a basis for sound future decisions. The industry is concerned, based on the May 12 conference call with the state and federal agencies, that there is not yet in place a comprehensive security plan. It is essential that the state and federal agencies not only have a security plan in place but that it is fully deployed well before The Tugboat, Towboat and Barge Industry Association 14 of 43

15 Director Miller Page 2 the Rotenone application. Without such a plan in effect, the origin of any fish found during the Rotenone application could be considered suspect. In fact, the delivery of fliers to the many adjacent neighborhoods and marinas could be an invitation to those who have a vested interest in locating Asian carp beyond the electric fish barrier to aid and abet that result. It is in everyone s interest to ensure that what is found in the kill and capture zone reflects the fish population that is present there and not fish that were placed there through human intervention. We urgently request your response regarding the safeguards the agency will take to assure that the results of the Rotenone application are valid and not the result of potential eco-terrorist activity. Sincerely, Lynn M. Muench Cc: Mr. Bill Bolen, U.S. Environmental Protection Agency RDML Mike Parks, U.S. Coast Guard MG John Peabody, U.S. Corps of Engineers Mr. Charlie Wooley, U.S. Fish and Wildlife Service Dr. Leon Carl, U.S. Geological Service Dr. Marc Gaden, Great Lakes Fishery Commission Dr. John Dettmers, Great Lakes Fishery Commission Mr. Patrick Carey, City of Chicago Mr. Edward Staudacher, Metropolitan Water Reclamation District of Greater Chicago 15 of 43

16 May 19, 2010 MG John Peabody Commander, Great Lakes and Ohio Valley Division U.S. Army Corps of Engineers P.O. Box Main Street Cincinnati, OH RE: edna Testing Protocol Dear MG Peabody: The American Waterways Operators (AWO) is the national trade association representing the inland and coastal tugboat, towboat and barge industry. Fifteen AWO members have headquarters in Illinois, and many others operate vessels that transit through the O Brien Lock. Ever since the electric fish barrier in the Chicago Sanitary and Ship Canal (CSSC) was proposed and installed, AWO and its member companies have worked with federal and state agencies, including the U.S. Coast Guard, the U.S. Army Corps of Engineers, the Environmental Protection Agency (EPA), and the Illinois Department of Natural Resources, to prevent the introduction of invasive species into the Great Lakes while ensuring that critical goods continue to flow to, from and throughout the Chicago region on the waterways. The industry s cooperation on this matter extended to the rotenone application that took place in the CSSC in December 2009, which involved the closure of the canal and an interruption in waterborne commerce, as well as the electro-fishing that took place in the Cal-Sag Channel during this same period, which also necessitated a waterway closure. We are now faced with another closure on the Cal-Sag Channel between May 20 and May 27. During a May 18 conference call with federal agencies, our industry learned that there will be water samples taken in the area of the upcoming fish kill prior to the rotenone application to be tested for Asian carp edna. As you know, it takes between seven and The Tugboat, Towboat and Barge Industry Trade Association 16 of 43

17 MG Peabody Page 2 ten days to process the edna, so the results will not be known until several days after the fish kill has been completed. To ensure accurate, non-biased results, we request that random samples from the testing site and from other sites be taken by an independent, third-party contractor to ensure transparency and good scientific process. We further request that all future edna samples be taken by an independent, third-party contractor. Providing blind samples is a routine, scientific process that ensures accurate, non-biased results. Thank you for your consideration of our request. We look forward to your timely response. Sincerely, Lynn M. Muench Cc: Mr. Bill Bolen, U.S. Environmental Protection Agency RDML Mike Parks, U.S. Coast Guard Mr. Marc Miller, Illinois Department of Natural Resources Mr. Charlie Wooley, U.S. Fish and Wildlife Service Dr. Leon Carl, U.S. Geological Service Dr. Marc Gaden, Great Lakes Fishery Commission Dr. John Dettmers, Great Lakes Fishery Commission Mr. Patrick Carey, City of Chicago Mr. Edward Staudacher, Metropolitan Water Reclamation District of Greater Chicago 17 of 43

18 AWO Testifies Before Chicago City Council on Potential Lock Closures May 21, 2010 On May 10, AWO member Del Wilkins of Canal Barge Company, Inc. testified before the Chicago City Council Committee on Energy, Environmental Protection and Public Utilities. The hearing focused on the economic and environmental impacts to the Chicago area if the Chicago and O Brien Locks were closed. Legislation to close the locks has been introduced by Michigan s Congressional delegation, even though the U.S. Supreme Court has denied efforts by the state of Michigan to close the locks on two occasions. A recommendation on modified lock operations is expected to be sent to the Secretary of the Army for Civil Works, Jo-Ellen Darcy in June. In his testimony, Mr. Wilkins indicated that the choice of whether to protect the environment or ensure the continued flow of vital maritime commerce is an unnecessary one, and frankly, a choice our nation cannot afford to make. Mr. Wilkins also told the Committee that AWO is committed to working with the appropriate agencies to move forward with a variety of solutions for preventing the carp from entering Lake Michigan that do not involve the counter-productive step of shutting down essential waterborne commerce via lock closures. Council members recently introduced two resolutions asking the U.S. Army Corps of Engineers to keep the locks open. To read Mr. Wilkins s testimony, please click here. To read the two resolutions from the City Council, please click here and here. To read the latest report from the Asian Carp Regional Coordinating Committee about its plans for addressing the carp threat, please click here. The information on the potential for lock closures is located on pages of that report. For further questions, please contact Lynn Muench at (314) , or via at lmuench@vesselalliance.com, or Benjamin Rogers at (703) , extension 264, or via at brogers@vesselalliance.com. 18 of 43

19 Coast Guard Introduces a 77-Mile Safety Zone in Chicago-Area Waterways May 21, 2010 On May 11, the U.S. Coast Guard announced the immediate implementation of a 77-mile safety zone from Brandon Road Lock and Dam to Lake Michigan in Illinois. The temporary interim rule (TIR) will be in place until March 1, The 77-mile stretch of waterways includes the navigable waters of the Des Plaines River, the Chicago Sanitary and Ship Canal (CSSC), branches of the Chicago River, and the Cal-Sag Channel. The Coast Guard indicated that the safety zone s extensive length and time was issued to facilitate on demand Asian carp operations. The Coast Guard wrote that it could not provide more advanced notice to stakeholders about this TIR because doing so would delay the Coast Guard s readiness to protect the general public and therefore, is impracticable and contrary to the public interest. AWO is deeply concerned about both the lack of warning to stakeholders regarding this safety zone, and the enormous geographic area it covers. This TIR could allow unprecedented disruption to waterborne commerce with limited warning to the towing industry, its customers and other waterway users. The importance of waterway transportation was highlighted in the recent DePaul University study that gave a conservative and limited estimate of waterborne commerce as equivalent to $4.7 billion. AWO is in the process of developing comments, which are due by July 12. To read the announcement of the safety zone as it appeared in the Federal Register, please click here. For further questions, please contact Lynn Muench at (314) , or via at lmuench@vesselalliance.com, or Benjamin Rogers at (703) , extension 264, or via at brogers@vesselalliance.com. 19 of 43

20 FOR IMMEDIATE RELEASE Contact: Anne Burns May 25, 2010 (703) $1.5 Million Experiment Finds No Asian Carp in Chicago Area Waterway Results Indicate Reliability of Electric Barriers, Suggest No Reason to Close Locks WASHINGTON, D.C. At a cost of $1.5 million to taxpayers, a week-long closure of a twomile stretch of the Little Calumet River above electrical barriers placed to repel Asian carp from gaining access to the Great Lakes, a fish poisoning of more than 100,000 fish has yielded no Asian carp. The operation was spurred by one positive hit of the non-peer reviewed Asian carp edna tests. No live fish have been seen beyond the electric barriers. The American Waterways Operators (AWO), the national trade association for the tugboat, towboat and barge industry, pointed out today that currently, evidence of an imminent threat of Asian carp to the Great Lakes ecosystem does not exist and there is no justification for contemplating a temporary or permanent lock closure and a shutdown of waterways commerce in the region. AWO President & CEO Thomas A. Allegretti said, The results of this failed attempt, along with extensive fishing in the area since November to find a live Asian carp near Lake Michigan, certainly suggest that the confidence the U.S. Army Corps of Engineers has in the effectiveness of the electric barriers is well placed. When the planned third electric barrier comes on line, it will only reinforce the protection of our precious Great Lakes. Allegretti continued, AWO supports nine courses of action identified by the federal government s Asian Carp Framework as possible solutions to deter the Asian carp. Closing locks and shutting down vital commerce is not a solution, especially when invasive species like the Asian carp have other avenues of access. Rather, it is a knee-jerk reaction that we can ill afford at a time when jobs are in great demand. Lock closures would do more harm than good. ### 20 of 43

21 Second Fish Kill Reveals no Asian Carp Above Electric Barrier; Lawmakers Send Letter to Senate Committee Calling for a Physical Separation Study June 4, 2010 The second application of rotenone, a fish poison, by the Illinois Department of Natural Resources to a two-mile portion of the Cal-Sag Channel in Illinois to check for the presence of Asian carp did not produce a single carp. The fish kill took place beginning on May 20 and necessitated a week-long closure of the waterway, in spite of limited warning provided to industry. The application came at an estimated cost of $1.5 million and killed more than 11,000 fish. The results are consistent with a December fish kill, as well as the electro-fishing and netting in waterways that have taken place since November. No Asian carp have yet to be located above the electric fish barrier in the Chicago Sanitary and Ship Canal. In response to this latest fish kill, AWO President & CEO Thomas Allegretti stated that, The results of this failed attempt, along with extensive fishing in the area since November to find a live Asian carp near Lake Michigan, certainly suggest that the confidence the U.S. Army Corps of Engineers has in the effectiveness of the electric barriers is well placed. For more on the AWO reaction, please see the press release on page 9. State and federal agencies have depended heavily on edna tests to justify these actions. This is problematic since edna has never been peer-reviewed and, at this point, there has been no confirmation of any claims based on its samples. Unfortunately, revelations on the inadequacy of edna have not terminated these attempts. While bills in the House and Senate to close the O Brien and Chicago Locks are still pending, 13 Senators recently requested that the Senate Environment and Public Works Committee introduce legislation directing the Corps to study how to build a physical barrier between the Great Lakes and the Mississippi River System. Closing off the one area in the country where these two waterways meet would have devastating economic and environmental consequences, and AWO will continue to work with its partner associations and congressional allies to ensure that the waterway remains open to commerce. For more information on this issue, please contact Lynn Muench at (314) , or via at lmuench@vesselalliance.com, or Benjamin Rogers at (703) , extension 264, or via at brogers@vesselalliance.com. 21 of 43

22 AWO Conveys Importance of Navigation to Federal Agencies June 18, 2010 AWO recently submitted three sets of comments to federal agencies regarding the issue of preserving navigation in the Chicago Area Waterways System (CAWS) in Illinois while protecting the Great Lakes ecosystem from the Asian carp. AWO emphasized that the two goals are not mutually exclusive, and that it is essential that the agencies include, inform and seek guidance from stakeholders on the far-reaching decisions that state and federal agencies are undertaking. Comments to the Corps On June 15, AWO submitted two sets of comments to the U.S. Army Corps of Engineers - Chicago District. The comments were written in response to the District s June 3 release of two studies on how to proceed in protecting the Great Lakes from Asian carp. The interim reports included Interim Report III, Modified Structures and Operations and Interim Report IIIA, Acoustic Bubble Barriers. Interim Report III is a draft report stating that the Corps decided against introducing a regular schedule of lock closures. AWO agrees with this decision. As stated in AWO s comments, random lock closures with no established protocol or notification to the industry will have a chilling impact on the industry and our customers. AWO remains concerned, however, about the Corps statement that lock closures may still happen without advanced warning. In order to prevent lock closures with no opportunity for the industry to plan and make alternative arrangements, AWO requested that state and federal agencies develop a protocol which outlines the criteria used to justify closures, and provide stakeholders with a 30-day notice prior to any shutdown along with a timeline for the closure. To read AWO s comments on Interim Report III, please click here. To read Interim Report III in its entirety, please click here. Interim Report IIIA is a final report that describes the construction process of a demonstration acoustic bubble curtain with strobe lights (ABS) barrier near Brandon Road Lock and Dam in CAWS. AWO strongly supports ABS installation, as this technology holds great potential to deter the carp from advancing upstream while not interrupting the waterborne commerce that is so essential to the region. As the Corps plans to begin implementation of the demonstration ABS barrier in the coming months, AWO requested that Congress fund the barrier fully and efficiently to ensure immediate 22 of 43

23 construction and maintenance. To read AWO s comments on Interim Report IIIA, please click here. To read Interim Report IIIA in its entirety, please click here. Comments to the Coast Guard On June 12, AWO submitted comments to the U.S. Coast Guard in response to the agency s May 11 publication of a temporary interim rule (TIR) for a 77-mile safety zone from Brandon Road Lock and Dam to Lake Michigan. To read more about the TIR, please click here for an article from the May 21 edition of the AWO Letter. In its comments, AWO expressed concern about both the economic chilling effect that such a wide geographic zone and time, almost one year, will have on the towing industry and its customers, and the overreliance of the Asian Carp Regional Coordinating Committee (ACRCC) on edna samples in deciding when to institute waterway closures. As it stated in its comments to the Corps, AWO suggested that actions taken by agencies that interrupt navigation without notification are damaging to the economy. Furthermore, notifications are necessary since the industry shares the ACRCC s goals of providing environmental protection to our waterways and facilitating the movement of commerce. Recent lock closures and interruptions have been a direct response to positive edna hits, a technology that has not been peer-reviewed. As a result, AWO requested that the Coast Guard and other agencies incorporate identification of Asian carp locations by sound, reliable and proven science, not the exclusive use of edna. To read AWO s comments on the TIR, please click here For more information, please contact Lynn Muench at (314) , or via at lmuench@vesselalliance.com. In AWO s Arlington office, the points of contact are Mary McCarthy and Benjamin Rogers. They can be reached at (703) , extensions 254 or 264, respectively, or via at mmccarthy@vesselalliance.com or brogers@vesselalliance.com. 23 of 43

24 FOR IMMEDIATEE RELEASEE April 1, 2010 Contact: Anne Davis Burns (703) AWO Applauds Summary Judgment Against Massachusetts Oil Spill Law; Says Decision Will Enhance Safety WASHINGTON, D.C. The American Waterways Operators (AWO), the national trade association for the tugboat, towboat and barge industry, hails the decision yesterday by the U.S. District Court, Massachusetts District, to grant Summary Judgment against a 2004 Massachusetts oil spill law, declaring it null and void. The U.S. Department of Justice sued the Commonwealth over the constitutionality of the law enacted in response to a 2003 accidental tank barge oil spill in Buzzards Bay. The decision affirms the 2008 recommendation of the Magistrate Judge that Massachusetts acted unconstitutionally in enacting the 2004 law thatt regulated the crewing and operation of towing and tank vessels, areas reserved to the Federal government, specifically the U.S. Coast Guard. This action by the District Court upholds the longstanding principle of Federal preemption for interstatee commerce and the exclusive authority of the Coast Guard over these and other navigational safety issues. In ruling, Judge Douglas P. Woodlock asserted, In the final analysis, the law of preemption well charted by the Magistrate Judge in his successive Reports and Recommendations leaves the last word under Federal law regarding the formulation of regulations to control vessel traffic, to enhance vessel safety and to decrease environmental hazards in Buzzards Bay to the Coast Guard. Congress has explicitly authorized the Coast Guard to do so through its rulemaking process. AWO President & CEO Thomas Allegretti pointed out the benefits to maritime safety of the ruling saying, Federal law provides a consistent regulatory framework that helps ensure a safe operating environment for interstate commerce by preventing a confusing set of different situational rules dependent on location. A Regulated Navigation Area (RNA) enacted by the Coast Guard established special safety rules for vessels operating in the area, and safety statistics show that the RNA is working well. This decision puts the safety and environmental protection of U.S. waters squarely under the appropriate authority of the U.S. Coast Guard. ### 24 of 43

25 THE AMERICAN WATERWAYS OPERATORS * CHAMBER OF SHIPPING OF AMERICA INTERTANKO * INTERNATIONAL CHAMBER OF SHIPPING INTERNATIONAL GROUP OF PROPERTY AND INDEMNITY CLUBS FOR IMMEDIATE RELEASE CONTACT: Anne Burns April 7, 2010 (703) Massachusetts Sued Over 2009 Oil Spill Law Concerns over Unconstitutionality, Degradation of Marine Safety and Environmental Protection WASHINGTON, D.C. The American Waterways Operators (AWO), the International Association of Independent Tanker Owners, the Chamber of Shipping of America, the International Chamber of Shipping, and the International Group of Protection & Indemnity Clubs filed suit yesterday in U.S. District Court, District of Massachusetts, against a 2009 Massachusetts oil spill law, challenging the state statute as unconstitutional and detrimental to marine safety and environmental protection. Together, the plaintiffs represent over 35,000 tank vessels worldwide, along with their insurers, demonstrating the global objection to the 2009 Massachusetts law. The state law being challenged compels vessel operators to voluntarily comply with state not Federal requirements for transit through Buzzards Bay, through threat of extremely punitive monetary penalties, a violation of the Federal supremacy clause of the U.S. Constitution. Just as important is the concern of the maritime industry, which operates internationally and across state boundaries, that a patchwork of individual state regulations, rather than a consistent federal regulatory regime, creates confusion and lack of uniformity that threatens marine safety and environmental protection. The disputed Massachusetts law imposes 24-hour notification of intent to transit Buzzards Bay, the acceptance of a state pilot on board for transit, and the presence of an escort tug to shadow vessels carrying 6,000 or more gallons of fuel. However, regulation of vessel manning and operations is reserved to the Federal Government and its agent, the U.S. Coast Guard, as reaffirmed by the U.S. Supreme Court in Ray v. Atlantic Richfield Co., 435 U.S. 218 (1947) and Intertanko v. Locke, 529 U.S. 89 (2000). The Massachusetts law also imposes triple damages in the event of an oil spill, beginning at $750,000 per day, on any vessel operator that does not voluntarily comply with the regulations. This coercion has forced vessel operators to conform to the Commonwealth s standards beginning January 21, 2010, rather than risk the ruinous impact of the penalties. A similar unconstitutional 2004 Massachusetts law was struck down by the U.S. District Court, Massachusetts District, on March 31. To read more about that case, click on the following link: AWO President Thomas A. Allegretti said, We hope the Court will once again rule to protect the marine environment, those who labor in maritime commerce, and the U.S. Constitution. ### 25 of 43

26 U.S. District Court Strikes Down Massachusetts Law to Regulate Vessel Crewing, Operations; Maritime Industry Files New Challenge to 2009 State Law April 9, 2010 On March 31, the U.S. District Court, District of Massachusetts, issued an order for Summary Judgment against the State of Massachusetts in the case of U.S. v. Massachusetts. The U.S. Government and AWO were both plaintiffs in the case. As a result of the ruling, the portions of the 2004 Massachusetts Oil Spill Prevention Act regulating the crewing and operation of towing vessels and tank barges in Buzzards Bay are null and void. The decision of District Court Judge Douglas P. Woodlock, which can be read by clicking here, follows a recommendation for Summary Judgment that was issued by U.S. Magistrate Judge Leo Sorokin of the same court in July Judge Woodlock s ruling also includes a permanent injunction barring implementation of the state regulations that were invalidated. The State of Massachusetts has 60 days from the date of the ruling to appeal this decision. The court s decision upholds the longstanding constitutional principle that the federal government, via the U.S. Coast Guard, has preemptive authority over state laws regarding vessel design, equipment, operations, and crewing. This principle was unanimously affirmed by the U.S. Supreme Court in 2000 in the case of U.S. v. Locke, which struck down Washington state regulations governing tank vessel operations. In U.S. v. Massachusetts, Judge Woodlock concurred with this reasoning, writing that the law of preemption... leaves the last word under Federal law regarding the formulation of regulations to control vessel traffic, to enhance vessel safety and to decrease environmental hazards in Buzzards Bay to the Coast Guard. The Massachusetts law in question was enacted in response to a 2003 accidental tank barge oil spill in Buzzards Bay. The U.S. and AWO both challenged several of the law s provisions in federal court shortly after its passage. For a more detailed history of the litigation, please see articles from the September 12, 2008 and July 31, 2009 editions of the AWO Letter. Tank Vessel Industry, Insurers Challenge 2009 Massachusetts Law On April 6, less than a week after the district court ruling striking down the 2004 Massachusetts law, AWO, the International Association of Independent Tanker Owners 26 of 43

27 (INTERTANKO), the Chamber of Shipping of America, the International Chamber of Shipping, and the International Group of Protection & Indemnity Clubs filed a new legal challenge before the same court seeking declaratory and injunctive relief from provisions of a 2009 Massachusetts law titled, An Act Preventing Oil Spills in Buzzards Bay, challenging the state statute as unconstitutional and detrimental to marine safety and environmental protection. The 2009 law compels vessel operators to voluntarily comply with state requirements for transit through Buzzards Bay, through threat of extremely punitive monetary penalties, a violation of the Federal supremacy clause of the U.S. Constitution. Just as important is the concern of the maritime industry, which operates internationally and across multi-state boundaries, that a patchwork of individual state regulations rather than a consistent federal regulatory regime creates confusion and lack of uniformity that threatens safety and environmental protection. The disputed Massachusetts law requires 24-hour notification of intent to transit Buzzards Bay, the acceptance of a state pilot on board for transit, and the presence of an escort tug to shadow vessels carrying 6,000 or more gallons of fuel. As reported in the March 26 edition of the AWO Letter, AWO provided written and oral testimony explaining the unconstitutionality of the state requirements, as well as the risk to marine safety that they introduce. As of March 29, however, vessel operators are required to comply with the escort tug requirement of the 2009 law. The district court decision striking down the 2004 Massachusetts law does not relieve vessel operators of the requirement to comply with the 2009 state law. AWO will keep members informed of any new developments in both of these cases. To read the AWO filing, please click here. For more information, please contact Nicole desibour or Benjamin Rogers at (703) , extensions 297 or 292, respectively, or via at ndesibour@vesselalliance.com or brogers@vesselalliance.com. 27 of 43

28 Massachusetts to Appeal Summary Judgment Order from District Court June 4, 2010 On May 27, the Commonwealth of Massachusetts informed counsel for both the U.S. Government and AWO that it filed a notice of appeal in response to the March 31 U.S. District Court, District of Massachusetts s order for Summary Judgment in the case of U.S. v. Massachusetts. As reported in the April 9 edition of the AWO Letter, the District Court, through its order, voided portions of the 2004 Massachusetts Oil Spill and Prevention Act regulating the crewing and operation of towing vessels and tank barges in Buzzards Bay. The ruling also included a permanent injunction against the implementation of the state regulations that were invalidated. Massachusetts has until June 7 to file a statement of the issues that it intends to appeal. The state s effort to reverse the District Court s ruling does not change any of the consequences of that ruling. AWO and several other organizations challenged provisions of a 2009 Massachusetts law titled, An Act Preventing Oil Spills in Buzzards Bay in April. More information on that filing can also be found in the above-referenced edition on the AWO Letter. Massachusetts has until June 28 to respond to this filing. AWO will keep members informed of all the latest developments in both cases. For more information, please contact Nicole desibour or Benjamin Rogers at (703) , extensions 297 or 292, respectively, or via at ndesibour@vesselalliance.com or brogers@vesselalliance.com. 28 of 43

29 AWO Proposes Briefing Schedule for VGP Litigation, Opposes EPA Request for Extension of Stay May 21, 2010 On May 7, AWO and the Lake Carriers Association (LCA) filed a motion with the U.S. Court of Appeals for the D.C. Circuit proposing a briefing schedule for the associations challenge to the Environmental Protection Agency s (EPA) Vessel General Permit (VGP). The AWO-LCA motion states that because not all issues have been resolved during settlement discussions with the agency, the court should set a briefing schedule and allow the litigation to move forward. Because a key issue in the litigation is EPA s application of the state 401 certification process, the AWO-LCA motion notes that the court s decision could have a significant effect on the development of the next Vessel General Permit (the current VGP expires December 18, 2013), and therefore, briefing should proceed as soon as possible. On May 11, AWO and LCA filed a second motion opposing the request by EPA and other parties to the litigation, including the State of Michigan, the Natural Resources Defense Council, the National Wildlife Federation, and Northwest Environmental Advocates, to continue to hold legal proceedings in abeyance until June 25. The government and environmental plaintiffs had requested the extension in order to allow time for an apparent settlement agreement between those parties to be put in writing. AWO and LCA contended that the court could set a briefing schedule allowing the AWO-LCA challenge to move forward without compromising the ability of EPA and the other parties to the litigation to draft a settlement agreement with respect to those claims. Over the past year, AWO and LCA have pursued settlement negotiations with EPA aimed at narrowing the scope of issues to be addressed in litigation. Tentative agreements have been reached on agency interpretations of several issues, including who must submit a Notice of Intent for a barge that is handled by multiple towers, fleeters, and terminals; the definition of voyage as it affects the frequency of required visual inspections; and the definition of visible sheen requiring reporting and corrective action. EPA plans to publish guidance on the agency s Web site later this spring or early summer reflecting those agreements; if that guidance is consistent with the language agreed to by AWO, AWO will not pursue these issues in further litigation. AWO is continuing to work with EPA to attempt to resolve the question of whether shoreside electronic recordkeeping systems can be used to meet the recordkeeping requirements of the VGP, and is hopeful that a settlement can be reached on this issue as well. As expected, however, EPA has been unable to satisfy the AWO-LCA concern that inclusion of state 401 certification conditions in a federally enforceable permit without prior opportunity to comment on those provisions as a package violates due process under the U.S. Constitution; this issue will have to be resolved in court. AWO will provide information on developments in the VGP litigation in the Members Only section of the AWO Letter. In the meantime, AWO members with questions should contact Jennifer Carpenter or Mary McCarthy at (703) , extension 260 or 254, or via at jcarpenter@vesselalliance.com or mmccarthy@vesselalliance.com. 29 of 43

30 State Requirement Compliance Deadline Opportunity for Extension? Notes VGP Page Number Connecticut Graywater discharge prohibition 1/1/2012 Yes, by 6/30/2010 Must demonstrate that vessel cannot comply with requirement 71 New York Graywater discharge prohibition 1/1/2012 Yes, by 6/30/2010 Must demonstrate that vessel cannot comply with requirement 92 New York Ballast water treatment systems meeting IMO x 100 standard on existing vessels 1/1/2012 Yes, by 6/30/2010 Technology does not exist. AWO developed a template letter to help members apply for extension 90 New York Bilgewater discharge prohibition 1/1/2012 Yes, by 6/30/2010 Must demonstrate that vessel cannot comply with requirement 93 New York VGP 401 Certification Conditions with Pending Effective Dates Ballast water treatment system meeting IMO x 1,000 standard on new vessels 1/1/2013 Yes, by 6/30/2011 Technology will not exist. AWO will develop a template letter to help members apply for extension 91 Ohio Ohio Ohio Ballast water treatment system meeting IMO standard on new oceangoing vessels 1/1/2012 No 101 Ballast water treatment system meeting IMO standard on existing oceangoing vessels 1/1/2016 No 101 Ballast water treatment system meeting IMO standard on new vessels operating exclusively in Great Lakes 1/1/2016 No 101 Pennslyvania Pennslyvania Minnesota Minnesota Ballast water treatment system meeting IMO standard on existing vessels 1/1/2016 No Ballast water treatment system meeting IMO x 1,000 standard on new vessels 1/1/2012 No Ballast water treatment system meeting IMO standard on existing vessels 1/1/2016 No Ballast water treatment systems meeting IMO standard on new vessels 1/1/2012 No State has requested that EPA remove requirement; EPA expected do so soon 104 State has requested that EPA remove requirement; EPA expected do so soon 105 Only applies to vessels greater than 50 meters (164 feet) and with more than 8 cubic meters of ballast water capacity, operating outside the Duluth COTP zone 84 Only applies to vessels greater than 50 meters (164 feet) and with more than 8 cubic meters of ballast water capacity, operating outside the Duluth COTP zone 84 Michigan Michigan Ballast water treatment methods approved by state required on oceangoing vessels discharging ballast in state waters 1/1/2007 No Reporting requirements for oceangoing vessels not discharging ballast in state waters 1/1/2007 No Existing state law requires oceangoing vessels discharging ballast in state waters to obtain a ballast water permit and install ballast water treatment systems using approved state methods between 1/1/2007 and 1/1/2012 Existing state law requires oceangoing vessels not discharging ballast in state waters to obtain a ballast water permit and follow reporting requirements between 1/1/2007 and 1/1/2012 Click here for state permit. Click here for state permit. 30 of 43

31 August 23, 2010 MEMORANDUM TO: AMT FROM: Robert McCaw RE: Status Update on Free Flow Power Corporation Navigation Study Over the past year and a half, AWO has submitted a series of pre-filing comments to the U.S. Federal Energy Regulatory Commission (FERC) regarding Free Flow Power (FFP) Corporation s 46 proposed hydrokinetic turbine projects in and by the Mississippi River. Recently, on March 9, FFP dropped 9 of its MO/IL project applications. On January 27, FERC issued its Initial Determination Letter (IDL) regarding its recommendations on FFP s Revised Study Plan, a plan that seeks to substantiate the viability and effectiveness of FFP s Integrated Licensing Process (ILP) projects. The IDL approved or modified several of FFP s proposed study designs, applicable to most or all studies that will be conducted for FFP s ILP and TLP Projects, and required FFP to consult AWO as a resource in its upcoming navigation study. In March, FFP formally requested consultation and assistance from AWO with the following navigation study objectives: 1. Assessment of baseline conditions related to navigation: This includes seasonal, daily, and hourly navigation patterns for commercial and recreational traffic relevant to each site and seasonal variations in depth requirements associated with changes in the type and weight of cargo that is transported. FFP is requesting this data from AWO companies. 2. Consultation with resource agencies and navigation industry stakeholders: FFP is requesting further consultation with an AWO working group representing the commercial navigation industry to obtain more data and information on navigation and traffic patterns. 3. FFP is requesting further consultation with an AWO working group representing the commercial navigation industry to help evaluate impacts to navigation that may occur during the installation, maintenance, and recovery of any in-water turbine infrastructure, such as support pilings, turbines, transmission and control cables. In response to FFP s request, AWO s FERC-Hydrokinetic Projects Working Group has held a series of conference calls with FFP, the most recent being held on August 17. As an outcome of these calls, the Working Group has decided on assembling a team of experienced vessel pilots to chart and describe vessel traffic patterns over proposed project sites and meet with FFP representatives to explain their findings. In addition, FFP plans on making a formal request to FERC to extend the study s timeline from the end of 2010 to With this extended timeframe, AWO remains confident that it can assist FFP in conducting a thorough and complete navigational study review. The Tugboat, Towboat and Barge Industry Association 31 of 43

32 NEWS RELEASE FOR IMMEDIATE RELEASE April 13, 2010 CONTACT: Debra Colbert, RECOMMENDATIONS/REPORT TO IMPROVE RELIABILITY, VITALITY OF AMERICA S INLAND NAVIGATION SYSTEM HEADED TO CONGRESS WASHINGTON, DC Today the Inland Waterways Users Board adopted a final report that accompanies a new comprehensive, consensus-based package of recommendations formulated by an industry and U.S. Army Corps of Engineers working group to improve the continued vitality of the U.S. inland navigation system over the next 20 years. The report and recommendations are being sent to Congress and if adopted, will better address the needs of the entire system and provide more dollars for greatly needed infrastructure improvements. The Users Board is a federal advisory committee that provides advice to Congress and the Assistant Secretary of the Army (Civil Works). This proposal is supported by industry stakeholders (see the current list of supporters at bottom of release) and government as a way to fund the navigation system and would be in lieu of the imposition of a lockage fee that has been unsuccessfully offered in the last two fiscal year budgets and is strongly opposed by Waterways Council, Inc. (WCI), the American Waterways Operators (AWO), and the National Waterways Conference (NWC), as well as many Members of Congress. Finalized in December and incorporated in a final report approved by the Users Board today, the recommendations were developed over a year-long period by the Inland Marine Transportation System Investment Strategy Team, composed of key U.S. Army Corps of Engineers personnel and members of the Users Board. Many in Congress have been very supportive of the process to create this set of recommendations. The proposed recommendations and report prioritize navigation projects across the entire system, improve the Corps of Engineers project management and processes to deliver projects on time 32 of 43

33 and on budget, and recommend a funding mechanism that is affordable and meets the system s needs. More than 100 stakeholders in industry have signed on to support this consensus-based longterm Inland Waterways Capital Development Plan that we feel will help our nation to continue to enjoy the benefits of our energy-efficient, congestion-relieving U.S. waterways transportation system, said Cornel Martin, WCI President & CEO. The recommendations urge funding parameters for the entire system rather than simply on a project by project basis, and will help us to address more of the system s critical projects now in order to complete them more efficiently, Martin continued. The recommendations would preserve the existing 50/50 (50% industry/50% federal) costsharing formula for new lock construction and major rehabilitation projects costing $100 million or more, while adjusting the current model to provide that dam construction and smaller rehabilitation projects would be 100% federally funded. These adjustments partially restore the original exclusion under WRDA 86 of major rehabilitation projects from cost-sharing and recognize the value derived by other beneficiaries of dams and the pools created by dams. Also recommended is a cost-share cap on all new lock construction projects that would preserve the Inland Waterways Trust Fund by preventing the industry from having to fund significant cost overruns. These new recommendations would necessitate an increase in the 20-cents-per-gallon fuel tax currently paid by the barge and towing industry, the only users of the system who are taxed. Industry spokespersons called the increase an investment by industry in order to improve the future viability and efficiency of America s inland waterways system. We must address the needs of our inland transportation system so that we can continue to move commerce efficiently on the inland waterways system, and we urge Congress to act on this pathway forward now, Martin concluded. NWC President Amy Larson echoed those sentiments in urging the Congress to adopt the proposal this year, noting that crucial infrastructure that is essential to our economic security and quality of life is not being properly rehabilitated or recapitalized. AWO President & CEO Thomas Allegretti asserted, This comprehensive package of recommendations deserves the support of every member of Congress who values our nation s unique inland waterways transportation system and the benefits it delivers to America s economy, environment, national security and quality of life. It is a thoughtfully constructed package of process improvements and funding mechanisms that will enhance the reliability of our nation s most efficient transportation and strengthen U.S. global competitiveness. 33 of 43

34 Waterways Council, Inc. is the national public policy organization advocating a modern and well-maintained national system of ports and inland waterways. The group is supported by more than 250 waterways carriers, shippers, port authorities, shipping associations and waterways advocacy groups from all regions of the country. Visit The National Waterways Conference, established in 1960, is the national organization to advocate for the enactment of common sense policies recognizing the widespread public benefits of our nation s water resources infrastructure. Membership is comprised of the full spectrum of water resources stakeholders, including flood control associations, levee boards, waterways shippers and carriers, industry and regional associations, port authorities, shipyards, dredging contractors, regional water districts, engineering consultants and state and local governments. The American Waterways Operators is the national trade association of the inland and coastal tugboat, towboat and barge industry. Established in 1944, AWO s mission is to promote the long term economic soundness of the industry, and to enhance the industry's ability to provide safe, efficient, and environmentally responsible transportation, through advocacy, public information, and the establishment of safety standards. Visit of 43

35 IWUB Unanimously Approves Report to Modernize Inland Waterways April 23, 2010 On April 13, the Inland Waterways Users Board (IWUB) unanimously approved a final report on recommendations for improvements to the U.S. inland waterways system over the next 20 years. This follows the IWUB s unanimous approval of the conceptual recommendations in December The report and recommendations are the result a year of study and research undertaken by the IWUB and U.S. Army Corps of Engineers experts on how to improve the reliability of the inland waterways infrastructure, which provides essential economic, environmental, and congestion-relieving benefits for the United States. The IWUB was established through the Water Resources Development Act (WRDA) of 1986 to advise the U.S. Army Corps of Engineers and Congress on spending from the Inland Waterways Trust Fund (IWTF) for construction and rehabilitation projects on the inland waterways. The proposed recommendations and report prioritize navigation projects across the entire system, improve the Corps project management and process to deliver projects on time and on budget, and recommend a funding mechanism that is affordable and meets the system s needs. Among the specific recommendations approved were changes to both the spending and taxing components of the IWTF. For example, the report suggests: a) preserving the 50%/50% cost-share between the industry-financed IWTF and the government for new lock construction and rehabilitation projects costing more than $100 million, while adjusting the formula for funding dam construction and rehabilitation projects costing less than $100 million to a 100% share for the federal government; b) placing a cost-share cap on all new lock construction projects to prevent against cost overruns; and, c) an increase in the tax on diesel fuel that funds the IWTF of between six and nine cents per gallon. As of April 22, 187 organizations have indicated their support for the IWUB s recommendations. To see a full list of these groups, or to add your group s support to the list, please click here. AWO will continue to work with WCI, the National Waterways Conference, and Congressional allies toward implementation of these needed reforms within a 2010 WRDA bill. For a copy of the IWUB report, visit the WCI website at For more information, please contact Jennifer Carpenter or Benjamin Rogers at (703) , extension 260 or 264, respectively, or via at jcarpenter@vesselalliance.com or brogers@vesselalliance.com. 35 of 43

36 Users Board Chairman Testifies on WRDA Bill April 23, 2010 On April 15, Steve Little, President and CEO of Crounse Corporation and Chairman of the Inland Waterways Users Board (IWUB), testified before the Water Resources and Environment Subcommittee of the House Transportation & Infrastructure Committee on proposals to be included in a Water Resources and Development Act (WRDA). In his written testimony, Mr. Little offered strong support for the report adopted by the IWUB April 13 proposing a 20-year capital development plan for the inland waterways system. The plan contains a series of recommendations for improving the reliability and ensuring the necessary funding to support the nation s inland navigation system. Mr. Little pointed out that the need for a long-term capital investment plan for the inland waterways has been apparent for a number of years, and urged members of the subcommittee to include in a WRDA bill the provisions that are necessary to fully implement this comprehensive inland waterway system modernization plan. In a statement for the hearing record, full Committee Chairman James Oberstar (D-MN) offered his support for the timely passage of a WRDA bill. He also stated that the Committee is moving on an agenda to plan for the next generation of roads, bridges, public transit, airports, water transportation, and water-related infrastructure. For more information, please contact Jennifer Carpenter or Benjamin Rogers at (703) , extensions 260 and 264, respectively, or via at jcarpenter@vesselalliance.com or brogers@vesselalliance.com. 36 of 43

37 Inland Waterways Capital Development Plan Supports U.S. Jobs, Users Board Member Testifies May 21, 2010 The Senate Environment and Public Works Committee should embrace a plan developed by the Inland Waterways Users Board (IWUB) and U.S. Army Corps of Engineers to address inland waterways infrastructure development and funding challenges and improve the reliability of the inland waterways system, Users Board and AWO member Matt Woodruff of Kirby Corporation told the Committee at a May 6 hearing. Mr. Woodruff was one of four witnesses who testified at the hearing, which was focused on the job creation and economic development opportunities associated with a 2010 Water Resources Development Act (WRDA). All witnesses expressed support for passage of a WRDA this year. Mr. Woodruff recommended that the Committee incorporate into WRDA the Inland Waterways Capital Development Plan. The plan was unanimously approved by the IWUB in April and is supported by more than 200 national and regional waterways stakeholders. For a list of supporters, please click here. To register your support for the plan, please click here. To read the complete plan, click here. In his testimony, Mr. Woodruff focused on the economic benefits that enhancing waterways infrastructure brings to the nation, including well-paying jobs for American workers. Implementing the Capital Development Plan will bring billions of dollars in benefits to our economy, creating and maintaining a host of jobs along the way. Both Committee Chairman Barbara Boxer (D-CA) and Committee Ranking Member James Inhofe (R-OK) agreed with Mr. Woodruff on the connection between infrastructure and jobs. Additionally, Senator Lamar Alexander (R-TN) conveyed his support for the IWUB plan during the hearing. The other three witnesses at the hearing were: Janet F. Kavinoky, Director of Transportation Infrastructure, Congressional and Public Affairs for the U.S. Chamber of Commerce; Victor Uno, President of the Board of Port Commissioners; and, Mitch White, Immediate Past Chair of the Association of General Contractors. Ms. Kavinoky testified that the U.S. Chamber of Commerce supports the IWUB plan. To read Mr. Woodruff s testimony, please click here. For more information on AWO s work with Waterways Council, Inc., and the National Waterways Conference to promote enactment of the Capital Development Plan in law and Administration policy, please contact Jennifer Carpenter or Chris Coakley at (703) , extensions 260 or 297, respectively, or via at jcarpenter@vesselalliance.com or ccoakley@vesselalliance.com. 37 of 43

38 Adopt Inland Waterways Capital Development Plan, Users Board Chairman Urges June 4, 2010 On May 27, U.S. Senate Environment and Public Works (EPW) Committee staff hosted a briefing on issues that could be addressed in a Water Resources and Development Act (WRDA) for The briefing took the place of a full EPW hearing originally scheduled for the same day, but postponed due to an unusually heavy vote schedule on the Senate floor. The individuals scheduled to be witnesses, including Inland Waterways Users Board (IWUB) Chairman and AWO member Steve Little of Crounse Corporation, provided a briefing for committee staff in lieu of testimony. Mr. Little emphasized the benefits of including the Inland Waterways Capital Development Plan in WRDA 2010, noting that the plan would enable the U.S. Army Corps of Engineers to complete 25 priority lock and dam projects over 20 years, as opposed to only six projects if the proposed reforms are not adopted. Mr. Little also pointed out that, under the plan, industry would continue to pay 50 percent of the cost of new lock construction and major rehabilitation projects costing more than $100 million. The Capital Development Plan was developed by a team of experts from the IWUB and the Corps to address longstanding inland waterways infrastructure development and funding challenges and improve the reliability of the inland waterways system. It was unanimously approved by the IWUB in April and is supported by more than 200 national and regional waterways stakeholders. For a list of supporters, please click here. To register your support for the plan, please click here. To read the complete plan, click here. Other individuals who spoke at the briefing included: James Weakley, President of the Lake Carriers Association; Bill Salina, County Commissioner of Cascade County, Montana; Rodney Mayer, Assistant Deputy Director for FloodSafe California; and, Nathaniel Williams, Vice President and Director of the Maryland/D.C. Chapter of The Nature Conservancy. As of this writing the WRDA hearing has not been re-scheduled. To read the testimony Mr. Little submitted to the Committee, please click here. For more information on AWO s work with Waterways Council, Inc., and the National Waterways Conference to promote enactment of the Capital Development Plan into law and Obama Administration policy, please contact Jennifer Carpenter or Chris Coakley at (703) , extensions 260 or 297, respectively, or via at jcarpenter@vesselalliance.com or ccoakley@vesselalliance.com. 38 of 43

39 Support the Inland Waterways Capital Development Plan Invest in America s Inland Waterways Transportation System Benefits to America America s inland waterways are a precious resource, and the envy of the world because of the natural water highway the waterways system provides for commerce. Modern lock and dam infrastructure is critical to U.S. competitiveness in the world market, to environmental protection, to energy efficiency, to the sustainment of well-paying American jobs and to congestion relief. Inland waterways transportation is a key component of the intermodal transportation network, and is essential to our nation s economy, environment, and quality of life. A Consensus Plan to Improve Inland Waterways Navigation Infrastructure Industry and the U.S. Army Corps of Engineers have worked together over the past year to develop a comprehensive, consensus package of recommendations to improve the continued vitality of this critical system. The recommendations, unanimously endorsed by the congressionally established Inland Waterways Users Board on December 15, 2009, will: Prioritize the completion of navigation projects across the entire system, Improve the Corps of Engineers project management and processes to deliver projects on time and on budget, and Recommend an affordable funding mechanism to meet the system s needs. The recommendations represent a new approach to meet the longstanding need for efficient delivery and timely completion of critical projects and sustainable funding for the Inland Waterways Trust Fund. The nation s transportation system and taxpayers would benefit from the completion of essential navigation infrastructure and the containment of cost overruns. The final report detailing these recommendations was approved by the Inland Waterways Users Board meeting on April 13, of 43