Update on USACE Civil Works Program Authorities, Policies, and Guidance

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1 Update on USACE Civil Works Program Authorities, Policies, and Guidance Mark Mazzanti, SES Programs Director USACE, Southwestern Division (SWD) FEB 2017 File Name The views, opinions and findings contained in this report are those of the authors(s) and should not be construed as an official Department of the Army position, policy or decision, unless so designated by other official documentation.

2 Overview 2 USACE Civil Works Transformation USACE SWD Civil Works Mission and Area of Responsibility Regional priorities Value of partnering on the Texas coast Civil Works Program budget outlook New authorities under Water Infrastructure Improvements for the Nation Act (WIIN) New Sec 401(c) and 217(b) guidance Key issues for active partnered management

3 USACE Civil Works Transformation: Meeting Our Nation s Current and Emerging Water Resources Needs Imperatives: Improve performance and responsiveness Increase customer satisfaction, public trust and confidence Improve readiness Maintain a competitive edge Outcomes: Promote enhanced capabilities and greater involvement, ownership, concurrence and commitment among USACE, sponsors, and partners

4 USACE SWD Civil Works Mission and Area of Responsibility Headquartered in Dallas, is a Major Subordinate Command of USACE Oversees hundreds of water resources development and military design and construction projects that bring value to our communities, our Nation and our Warfighters Covers some 2.3 million acres of public land and water, with an annual program totaling nearly $2.6 billion Civil Works mission includes flood risk management, navigation, hydropower, water supply, recreation, regulatory, and disaster relief 4

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6 Value of Partnering on the Texas Coast America s Energy Coast Major influence on Nation and world Value of partnering Project success! USACE priority Ensuring we meet needs of customers, sponsors, and public Customer surveys due 12 APR 17 Stakeholder Partnering Forum Opportunity to understand what is working well and get feedback on issues so we can address challenges quickly and communicate resolutions

7 Civil Works Program Budget Outlook FY 17 Continue to be on Continuing Resolution Authority (CRA) through 28 APR 17, President s Budget (PB) potentially released in MAR- APR 17 timeframe Lesser of Rule: Studies not in House and Senate reports at risk of not receiving funding under CRA Using re-programming of carryover to sustain funding for execution, but limited potential sources FY18 PB Budget Defense Hearings scheduled as early as first week in APR 17 Issue paper preparation Energy and Water, Transportation & Infrastructure, Environment & Public Works, and Appropriations Congressional visits Spring 17 following release of President s Budget FY 19 PB Budget Development Beginning process to compile activities for submission in MAY 17 Maintain close contact with Congressional delegation

8 New authorities under WIIN Water Resources Development Act (WRDA) 2016 Enterprise authorities applicable to SWG: Sec 1122 Establish pilot program to carry out projects for beneficial use of dredged material, including projects across business lines and for promotion of broad array of benefits, managed by regional beneficial use agency teams, informed by stakeholders. Cost sharing pursuant to Sec 204 of WRDA Sec 1127 May authorize credit or reimbursement under this subsection for a discrete segment of a flood damage reduction project, or separable element thereof, before final completion of project or separable element. Sec 1153 Authorized to accept and use materials, services, or funds contributed by a non-federal public entity, a nonprofit entity, or a private entity to repair, restore, replace, or maintain a water resources project Potential opportunity for Non-Federal Interest placement and shaping of suitable dredged materials for placement area dike raising.

9 New authorities under WIIN WRDA 2016 (cont) Enterprise authorities applicable to SWG (cont): Sec 1171 Amended Sec 1022 of Water Resources Reform and Development Act (WRRDA) 2014 to allow for credit or reimbursement for which a written agreement with Corps of Engineers for construction was finalized on or before December 31, Sec 1322 Clarifies prioritization of hurricane and storm damage reduction efforts directs Secretary to expedite completion of certain flood damage reduction and flood risk management projects and certain feasibility studies and a post-authorization change report, as well as of certain projects being carried out under Sec 211 of WRDA 1996.

10 New authorities under WIIN WRDA 2016 (cont) SWG - Specific Authorities: Sec 1201 Need Non-Fed Sponsor Letters of Intent for FY 19 budget development/submittal process: (21) Brazos River, Fort Bend County, TX. Project for flood damage reduction in the vicinity of the Brazos River, Fort Bend County, Texas. (23) Corpus Christi Ship Channel, TX. Project for navigation, Corpus Christi Ship Channel, Texas. LaQuinta Channel Deepening and Turning Basin. (25) Gulf Intracoastal Waterway, Brazoria and Matagorda Counties, TX. hurricane and storm damage reduction, Gulf Intracoastal Waterway, Brazoria and Matagorda Counties, Texas. Sec Texas Coastal Area. Secretary shall consider studies, data, and information developed by Gulf Coast Community Protection and Recovery District to expedite completion of the plan. SWG already complying.

11 SWG - Specific Authorities: New authorities under WIIN WRDA 2016 (cont) Sec 1318 Releases interest of land in Cameron County. Sec 1312 Extinguishes navigational servitude for land around Texas City ship Channel. Sec Project authorizations. Brazos Island Harbor, TX, Channel Improvement Project. Houston Ship Channel, Modification, Increased Total Project Cost.

12 New authorities under WIIN WRDA 2016 (cont) Implementation guidance development process/timeline: Sec 1112 Not later than 90 days after date of enactment of Water Resources Development Act of 2016, Secretary shall publish on website of Corps of Engineers guidance on implementation of this section and associated amendments. USACE is actively working on implementation guidance to meet this requirement.

13 Changes in New Sec 401(c) and 217(b) Guidance* Issued 3 FEB 17 Sec 401(c): RE administrative fee collected Disposal fee based on market rates Approval delegated to Major Subordinate Command (MSC) level Sec 217(b): Disposal fee based on O&M cost Approval delegated to MSC level Non-Federal Interest defined as Non Federal Sponsor (NFS) Execute MOA with NFS * See backup slides for process details

14 Key Issues for Active Partnered Management TPA requests agreement with Corps for concurrent review of marine construction and barge fleeting. Specific concern is PHA ability to issue water bottom leases. Sec 408 program requires assessment of all impacts to navigation projects as a system Barge fleeting requirement for Sec 10 compliance SWG discussing with TPA draft system wide Sec 217(b) MOA for review and comment Will minimize number of individual agreements Will require discussion of how to make authority available to use with Non-Fed Interests beyond Non-Fed Sponsor

15 Questions?

16 401 (c) PROCESS THIRD PARTY USE OF FEDERAL PLACEMENT AREAS APPLICANT Submit Complete Application for RE and REG (both may be needed) Sediment Sampling Provide Sediment Report Execute MOA Provide Fee Follow Ops Plan Before/After surveys Dewater/Clean Up Regulatory Real Estate Analysis and Acceptance SWD Review & Approve RE Outgrant & MOA Issued Conduct Work & Audit Regulatory Evaluation under Sec 404* of the Clean Water Act and Sec. 10 of Rivers and Harbors Act Administrative Fee Collected New Guidance For use of offshore disposal sites, permit decisions are regulated under Section 103 of the Marine Protection, Research and Sanctuary Act of 1972 Initial evaluation by Operations conducted to determine availability This is an overview of a complex legal process and is not intended to be all encompassing of the requirements to obtain an outgrant. The process is subject to change. Calculate Disposal Fee Market Price REG Permit Decision SWD Approval Public Interest Determination by REG & OPS: 1. Sufficient Capacity 2. Directly Linked to Use of Federal Project 3. Environmentally Acceptable (NEPA) SWG District: Verifies Sampling Collects Fee Executes MOA RE Issues Outgrant Inspect Work As-Builts

17 217 (a) PROCESS MODEL PPA NON-FEDERAL SPONSOR ONLY Executed Model PPA Agreement with additional clause to build capacity in place 217(a) Model PPA (Non-Federal Sponsor Only) 33 U.S.C. 2326a(a) Submit Completed RE Application Sponsor Verifies Requested Capacity Available Sediment Sampling Provide Sediment Report Fee Payment to Sponsor Before Work Begins Follow Ops Plan Before/After surveys Dewater/Clean Up Agreement & Construction Regulatory Real Estate Analysis & Acceptance Approval Process Conduct Work Operations Plan developed to manage additional capacity built for Sponsor Regulatory Evaluation under Sec 404* of the Clean Water Act and Sec. 10 of Rivers and Harbors Act This is an overview of a complex legal process and is not intended to be all encompassing of the requirements to obtain an outgrant. The process is subject to change. Ops Initial evaluation conducted to determine availability SWG District: Verifies Sampling RE Issues Outgrant to Start Work w/applicant REG Permit Decision Public Interest Determination By REG: 1. Sufficient Capacity 2. Directly Linked to Use of Federal Project 3. Environmentally Acceptable (NEPA) Inspect Work *For use of offshore disposal sites, permit decisions are regulated under Section 103 of the Marine Protection, Research and Sanctuary Act of 1972

18 217 (a) PROCESS NON-FEDERAL SPONSOR ONLY Each PA in Project Area needs a 217(a) Stand Alone Agreement Submit Complete Application for RE and REG (both may be needed) Sponsor Verifies Requested Capacity Available Sediment Sampling Provide Sediment Report Fee Payment to Sponsor Before Work Begins Follow Ops Plan Before/After surveys Dewater/Clean Up Agreement & Construction Regulatory Real Estate Analysis & Acceptance Approval Process Conduct Work SWD Approval of Executed Operations Plan Agreement developed to manage additional capacity built for Sponsor Regulatory Evaluation under Sec 404* of the Clean Water Act and Sec. 10 of Rivers and Harbors Act This is an overview of a complex legal process and is not intended to be all encompassing of the requirements to obtain an outgrant. The process is subject to change. Ops Initial evaluation conducted to determine availability *For use of offshore disposal sites, permit decisions are regulated under Section 103 of the Marine Protection, Research and Sanctuary Act of 1972 SWG District: Verifies Sampling RE Issues Outgrant to Start Work w/applicant REG Permit Decision Public Interest Determination By REG: 1. Sufficient Capacity 2. Directly Linked to Use of Federal Project 3. Environmentally Acceptable (NEPA) Inspect Work

19 217 (b) PROCESS NON-FEDERAL SPONSOR ONLY Submit Complete Application for RE and REG (both may be needed) Sediment Sampling Provide Sediment Report Execute 217(b) MOA w/sponsor Provide Fee Follow Ops Plan Before/After surveys Dewater/Clean Up Regulatory Real Estate Analysis & Acceptance Approval Process Conduct Work Regulatory Evaluation under Sec 404* of the Clean Water Act and Sec. 10 of Rivers and Harbors Act New Guidance Ops Initial evaluation conducted to determine availability Calculate Disposal Fee O&M Cost SWD Approval SWG District: Verifies Sampling Collects Fee Execute 217(b) MOA w/sponsor Issues Outgrant to Start Work w/applicant REG Permit Decision Inspect Work This is an overview of a complex legal process and is not intended to be all encompassing of the requirements to obtain an outgrant. The process is subject to change. *For use of offshore disposal sites, permit decisions are regulated under Section 103 of the Marine Protection, Research and Sanctuary Act of 1972 Public Interest Determination By REG & Ops: 1. Sufficient Capacity 2. Directly Linked to Use of Federal Project 3. Environmentally Acceptable (NEPA)