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.  Barge transportation on the inland waterways 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 reliability 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 will be considered at the next Inland Waterways Users Board meeting on April 13, 2010.

 

Recommended Reforms 

 

The proposal would:

·         Preserve the existing 50% industry/50% federal cost-sharing formula for new lock construction and major lock rehabilitation projects costing $100 million or more.

·         Adjust the current model to provide 100% federal funding for dam construction and major rehabilitation and smaller lock rehabilitation projects, recognizing the value derived by other beneficiaries from dams and the pools created by dams.

·         Include a cost share cap on new lock construction projects to incentivize keeping projects on budget and prevent industry taxpayers from bearing the burden of paying for unreasonable cost overruns.  This will strengthen the ability of the Inland Waterways Trust Fund to fund more priority projects in the pipeline.  

The proposed new funding parameters will necessitate a 30% to 45% increase (between 6 and 9 cents per gallon) in the existing fuel tax of 20-cents-per-gallon that is paid by the barge and towing industry, the only users of the system who currently are taxed.  At the same time, the recommended reforms to the Corps of Engineers’ project management and delivery process would ensure that these additional resources are spent wisely.

 

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Endorsements 

 

The proposal has been endorsed by a diverse group of waterways stakeholders, including: