Capitol Currents newsletter

May 5, 2010

 

This is a text-only version of Waterways Council’s newsletter, Capitol Currents.  To read the full PDF version, including all images, please visit www.waterwayscouncil.org/CapitolCurrents.htm.

 

 

NEW CAPITAL DEVELOPMENT PLAN APPROVED, FOCUS SHIFTS TO WHITE HOUSE, CAPITOL HILL

By unanimous vote, the Inland Waterways Users Board in mid-April ratified the Inland Marine Transportation Systems (IMTS) “capital projects business model” on which teams of 18 Users Board members and other waterways officials and 28 senior Corps of Engineers leaders had worked since late 2008.

“This is an historic session,” said Stephen D. Little of the Crounse Corp., chairman of the Users Board, as it took up the final 225-page report. “This has been no small feat.”

With a comprehensive, 20-year inland waterway development plan now on the table, the focus has shifted to the White House and Capitol Hill, where key implementation decisions will be made in coming months. In the Congress, the outlook for enactment of enabling legislation before year’s end has improved in recent days.

Gary A. Loew, the Corps’ chief of programs integration, told the Users Board that, in developing the new strategic plan, the teams came up with “some fundamental relooks and rethinking of how we manage” the inland waterways program and its funding on a system--rather than project--basis, “how we do programming [and] our business model for design and construction.”

“It was incredibly important to applying funds efficiently that we find a way to priori­tize much better than we have in the past and focus our funds on completing projects efficiently,” Mr. Loew said. In addition, he said the Corps was modifying its project--delivery system.

Jeanine M. Hoey of the Corps’ Pittsburgh District, who served as team leader in developing the new long-term IMTS capital projects business model, then explained in detail the various aspects of the overall plan. “The emphasis is on finishing projects,” she said, rather than “starting projects,” which used to be the emphasis.

The new plan anticipates annual expenditures of $380 million--about $320 million on construction and $60 million on major rehabilitation. The total envisions $30 million of “management reserves” available for emergencies or contract modifications.

To pay the industry share of the $380 million tab, the inland waterways fuel tax would be increased from the present 20 cents a gallon to as much as 29 cents a gallon. For the first time, there would be a cap on cost sharing, based on the authorized project cost updated to the start of construction. Rehab projects costing less than $100 million and outlays at dams would not be cost shared.

Unless the IMTS plan is implemented, only seven inland navigation projects are projected to be completed over the next 20 years.

Ms. Hoey said the capital development plan was inter-linked, dependent on simultaneous implementation of all of its elements. “If one project doesn’t get funded efficiently, it’s going to throw off the entire program,” she said.

“This report is provided,” Ms. Hoey told the Users Board, “as a product that will set the course to assure a reliable inland marine transportation system for the next 20 years and beyond.”

 

Administration, Congress Asked to Embrace Report

The motion to approve the INTS team report encompassing the 20-year capital development plan was offered by William M. (Matt) Woodruff of Houston, the Kirby Corp.’s director-government affairs. It was a multi-part motion:

The motion found that the report was “consistent with the recommendations that were adopted by this board at our last meeting in New Orleans in December... and that the board adopt this report as the position of the Inland Waterways Users Board.” Further, Mr. Woodruff moved that the Administration “similarly adopt these recommendations and implement them as set out in the report.”

Finally, the resolution requested that Congress “consider and implement those portions of the report that require Congressional action.” The motion was seconded by Larry R. Daily of Alter Barge, Inc., and, when put to a vote, it was approved unanimously.

 

BROAD IMPLICATIONS. The “lessons” which emerged during the course of the lengthy waterways industry/ Corps collaborations in developing the new IMTS report may apply to the rest of the civil works program, too. “I think there are a lot of lessons learned from this report,” the Corps’ Gary Loew told the Users Board, “and we are just not going to... implement it for the inland waterways alone.” In fact, he said Asst. Secy. Jo-Ellen Darcy wanted these lessons applied “to the balance of our program as well.”

 

OFFICIALS ANTICIPATE ‘LIVELY DISCUSSION’

Jo-Ellen Darcy, Assistant Secretary of the Army (Civil Works), addressed the Users Board in its opening minutes and referred to the capital investment report as “something that all of us can look forward to.” She also attended the board’s December meeting when the report was discussed in detail.

“We anticipate some lively discussion about it, both here and other places within Washington,” she said. “I think that’s going to be a tribute to all of you here because you stepped up to a challenge that everyone’s been talking about for a long time but nobody... took it on. So I congratulate you for that.”

We demonstrated that industry and government can work together, said Maj. Gen. William T. Grisoli, the Corps’ Deputy Commanding General for Civil and Emergency Operations, who is the Users Board’s executive director. This was his first Users Board meeting.

Referring to the IMTS report, he said, “I am excited about it,” noting that Ms. Darcy and “several other leaders” in the Administration and the Congress will review the report. “We look forward to working with everyone as we move forward.”

 

PLAN’S BENEFITS. In her presentation, Ms. Hoey listed numerous benefits of the proposed capital development plan – which was developed after 13 face-to-face meetings and 17 Internet sessions over some 18 months:

--Avoiding a minimum of $0.5 billion to $2.1 billion in “cost growth” on navigation projects.

--Averting at least $2.8 billion in “benefits foregone” from delayed projects.

--Improved system reliability and efficiency.

--Additional environmental, societal, safety and energy benefits from achieving waterway improvements over shorter time frames.

 

Ms. Hoey, IMTS Team Draw Users Board’s Praise

When Ms. Hoey finished her presentation, Mr. Little, the Users Board chairman, thanked her for “not only the presentation today but for all your leadership and hard work over the last year and a half. You’ve done a truly remarkable job!” That was all the prompt that Users Board members and observers needed to give her a round of applause.

Throughout the months-long negotiations, Mr. Little said Ms. Hoey “helped us... stay focused on the goal and accomplish some­thing very great today.”

Later in the meeting, Mr. Woodruff said all those on the entire industry/Corps team that developed the final report “but especially Ms. Hoey... is deserving of something,” which led to a Board resolution officially recognizing the accomplishments of the IMTS working group. As a token of appreciation, Gen. Grisoli then presented her with a Corps of Engineers coin.

The last year and half has been a period “we can look back at with a great deal of pride,” Mr. Little told the Users Board. He said the new capital development plan was formulated by two groups, the waterways industry and the Corps, “who, although we have different perspectives on policy at times and different approaches to how we go about our business, share a common goal and a common belief... in the strength of the inland waterway system and its value to the nation.”

 

Stimulus Funds Doubled ’09 Navigation Program

Without strict budgeting prioritization, a more efficient project-delivery system, and enhanced Trust Fund revenues, America’s aging inland waterways infrastructure is in jeopardy. The Corps’ programs chief, Gary Loew, said the 2009 stimulus package, which did not require matching funds, had allowed his agency to “approximately double” its inland program last year.

In FY2009, he said stimulus funding for inland navigation construction and major rehab totaled $393.8 million. “So we were able to do a lot of catch-up,” Mr. Loew said. “Now, with most of the stimulus money allocated, “we are coming back down to reality as we have to deal with our limited funds.”

In another Users Board presentation, William R. Chapman, chief of the operations in the Great Lakes and Ohio River Division, described recent lock gate failures at Markland and Greenup L&Ds on the Ohio River. Markland’s main 1,200-ft. chamber was closed from last September 27 until March 1, and Greenup’s main lock was out of commission from January 27 to February 22.

 

‘Move Plan Forward,’ Waterway Groups Urge

In the public comment period, WCI Pres. Cornel J. Martin thanked the Users Board and IMTS team “for all of your work” on behalf of the inland waterways community. He said WCI had joined with the American Waterways Operators and National Waterways Conference in requesting that “all of those who depend on the rivers to join in supporting your effort.”

As a result, more than 150 organizations and companies quickly lent their support. Note: In the three weeks since then, another 50 have endorsed the IMTS report.

In a joint press release issued minutes after the Users Board approved the report, Mr. Martin said WCI and its two waterway partners had urged both the Administration and Congress “to move this plan forward and to get it signed into law so that we can continue to enjoy the benefits of our inland waterway system.”

 

More Than 200 Groups Endorse Users Board Strategy

American Waterways Operators (AWO), National Waterways Conference (NWC) and Waterways Council, Inc. (WCI) jointly urged inland waterways stakeholders to endorse the 20-year capital development plan developed by the waterways industry/Corps of Engineers strategy team. More than 200 waterway-related organizations, entities and companies have now confirmed their support.

Among the organizations endorsing the plan: American Land Conservancy; American Soybean Assn. and state chapters in Illinois and Indiana; Carpenters District Councils of Greater St. Louis and Mid-Central Illinois; International Liquid Terminals Assn.

Illinois and Kentucky Chambers of Commerce; National Assn. of Manufacturers; National Audubon Society; National Corn Growers Assn. and state associations in Illinois, Indiana, Iowa, Kentucky, Minnesota, Missouri and Ohio; National Council of Farmer Cooperatives; National Grain and Feed Assn. and state chapters in Illinois and Minnesota; North American Equipment Dealers Assn.; Steel Manufacturers Assn.; and 40 Farm Bureaus.

Ports signing on included those in Alabama, Cincinnati, Houston, Little Rock, New Orleans, Pittsburgh, Portland (Ore.), Vancouver (Wash.), and Tulsa. Among others supporting the capital development plan: 15 river valley associations, including the Gulf Intracoastal Canal Assn. and Pacific Northwest Waterways Assn., and 78 companies in waterway shipper, carrier, fleeting, terminal, shipbuilding and repair, and other waterway service sectors.

 

Include IMTS Plan in WRDA, Mr. Little Urges Panel

The most likely legislative vehicle for enacting the proposed Inland Waterway Capital Development Plan is the next Water Resources Development Act (WRDA). In mid-April, both the House and Senate signaled renewed interest in moving such legislation, although its enactment in the current Congressional session remains doubtful.

In the Senate, Sen. Barbara Boxer (California) and Sen. James M. Inhofe (Oklahoma), chair and ranking minority member of the Environment and Public Works Committee, invited colleagues to submit their “priority” requests for projects, studies or activities to be included in the next WRDA. The deadline for submissions: May 18.

Meanwhile, a House Transportation and Infrastructure (T&I) subcommittee held a second hearing on WRDA ‘10, taking testimony from six invited witnesses. Among them was Stephen D. Little, president/CEO of the Crounse Corp. and chairman of the Inland Waterways Users Board, who urged the panel to include in the next WRDA “the provisions [of the Users Board’s recommendations] that are necessary to fully implement this comprehensive inland waterways system modernization plan.”

REACTION. “I think your report, from my knowledge of it, is an outstanding piece of work,” Congr. Brian Baird (Washington) told Mr. Little. “You have got a long-term time frame. You have got a reasonable expenditure, a clear public benefit and a mechanism to pay for it... Madam Chair [Congr. Eddie Bernice Johnson (Texas)] and Chmn. [James L.] Oberstar [(Minnesota)], I hope that we look very seriously at this report.”

 

For More information, Visit WCI’s Website

Background information on the IMTS 20-year capital development strategy may be found on our website: www.waterwayscouncil.org. On the opening page, materials related to the plan can be found in the right-hand column.

Here you can access a copy of Mr. Little’s mid-April testimony before a Congressional committee strongly supporting the Users Board-endorsed plan, the 225-page final report on the IMTS Capital Projects Business Model, a 20-page executive summary of the same document, and other related materials.

 

Earmark Flap May Stall WRDA’s Consideration

In response to a House T&I Committee letter last fall, lawmakers submitted more than 2,200 individual requests for inclusion in WRDA‘10. In March, the House Republican leadership directed their members to withdraw their WRDA project requests – a decision which Congr. Oberstar, the committee chairman, said “complicates” WRDA’s enactment.

“Congress has never authorized a blank check to the Corps to enable it to invest wherever it chooses,” Chmn. Oberstar stated at his committee’s April 15 WRDA hearing. He said his panel received project requests – which are dubbed “earmarks” in legislative jargon – from 120 Republican members. A “handful” have asked to withdraw their proposals, he said, adding that he had heard some “do not intend to comply... because of the importance of these water resources projects... to their constituents.”

“Never in the history of the House have Corps authorizations been considered earmarks,” Chmn. Oberstar said. “That is a unique term applied to the appropriations process. From the very first Congress, works of the Corps of Engineers have been desig­nated individually and specifically by the House and Senate. That is the process.”

 

Senate Panel Schedules WRDA Hearing Tomorrow

In a move seen as boosting chances for enactment of WRDA legislation in the current Congressional session, Chmn. Boxer has scheduled a hearing before the full Senate Environment and Public Works Committee on Thursday on the “Water Resources Development Act of 2010: Jobs and Economic Opportunities.”

Four witnesses are scheduled to testify, including William M. (Matt) Woodruff of Houston, representing Kirby Corp., of which he is government affairs director. He is also a member of the Inland Waterways Users Board.

Others on the witness list: Janet F. Kavinoky, executive director of the U.S. Chamber of Commerce’s Americans for Transportation Mobility Coalition; Victor K. Uno, president of the board of port commissioners of the Port of Oakland, Calif.; and Robert M. (Mitch) White of San Pedro, Calif., general counsel of Manson Construction Co. and past chairman of the Associated General Contractors’ Federal and heavy construction division.

 

Lawmakers Propose Fix for Harbor Maintenance

Another witness at the T&I panel’s WRDA hearing was Barry W. Holliday, executive director of the Dredging Contractors of America. In2009,portuserspaid $1.268 billion into the trust fund, which spent only $807.5 million to maintain harbor channels – many of which are silting up and forcing about one-third of all ships using them to light-load. Meanwhile, the trust fund surplus exceeds $5 billion.

“Without a navigation channel dredged to its authorized width and depth, a port’s economic viability is threatened,” Mr. Holliday testified. “The United States will lose existing business and potential new business to foreign ports and, once lost, history shows it is rarely regained.” He wants the new WRDA to include a provision mandating that all trust fund revenues be spent in a timely manner for harbor maintenance.

In recent weeks, legislation has been introduced in both the House and Senate requiring that “the total budget resources made available from the Harbor Maintenance Trust Fund each fiscal year... shall be equal to the level of receipts plus interest” credited to the trust fund in that year. Sponsors of the legislation (H.R. 4844 and S. 3213) are Congr. Charles Boustany, Jr. (Louisiana) and 15 House colleagues and Sen. Carl Levin (Michigan) and eight Senate colleagues.

The legislation was referred to House and Senate committees handling the WRDA bill.

 

Reduced Barge Tonnage Cuts Trust Fund Income

During the first six months of the current fiscal year, the Inland Waterways Trust Fund took in $32 million in fuel taxes (plus $64,359 in interest). The October-March tax revenue compares with $35.1 million in the same period in FY2009, $38.8 million in FY2008, and $40.6 million in FY2007.

At the end of March, the U.S. Treasury said the Trust Fund’s assets totaled $80.6 million, of which $34.3 million was “outstanding transfer authority” from previous appropriations bills, leaving an unobligated balance of $46.3 million.

In a tabulation distributed at the recent Users Board meeting, the Corps’ Waterborne Commerce Statistics Center said commodities moved on the inland waterways system in the five-month, October-February period totaled 184.5 million tons – down 3.6 percent over the same period a year earlier. Petroleum and petroleum products increased by 3.9 percent but coal was down by 4.7 percent and farm and food products declined by 11.5 percent.

 

Appropriations Relegated to Legislative Slow Track

Congressional action on FY2011 appropriations for civil works – and all other domestic discretionary programs – is moving at a snail’s pace. Normally, passage of a budget resolution, or blueprint, sets the stage for allocation of spending targets for the 12 appropriations subcommittees, including the energy and water development panel.

In late April, the Senate Budget Committee approved a $3.7 trillion budget resolution, which leaders promised to take to the floor before Memorial Day. The Senate Plan adopts the President’s freeze on non-defense spending and would also prune about $10 billion more in discretionary spending.

In the House, some members resist cuts in programs and services while others urge more reductions to trim the Federal deficit. As a result, many Washington insiders believe that Congress will wait until after the November elections before passing most if not all domestic discretionary appropriations, relying on one or more “continuing resolutions” to keep the government operat­ing in the meantime.

 

Ms. Colosimo to Steer CEQ’s P&G Revisions

The deadline has passed for submitting comments on the proposed revisions of the water resources principles and guidelines (P&G) drafted by the Council on Environ­mental Quality (CEQ). CEQ received more than 110 comments, and it has begun the process of reviewing, evaluating and possibly incorporating some of the numerous recom­mendations it received.

The review is under the supervision of Robyn S. Colosimo, a long-time Corps official who was assigned to CEQ last month, replac­ing Terrance L. (Terry) Breyman, associate director for natural resources, who returned to his previous position in the Office of the Assistant Secretary of the Army (Civil Works). Ms. Colosimo, who served as the Corps’ acting chief of planning and policy during the last half of 2008, was named Penn State’s outstanding engineering alumni last year.

A National Academy of Sciences committee has launched a review of the P&G revisions to be completed this fall. Witnesses at its first session on March 30 included Nancy H. Sutley, who chairs CEQ, and top officials of EPA and the Departments of Army, Interior, and Agriculture. The panel’s next meeting on May 25 will hear several invited speakers.

MAY MEETING. Stakeholders representing eight water resources-related organizations are on the agenda when the NAS committee on “Improving Principles and Guidelines for Federal Water Resource Planning” holds its May 25th meeting.

They include Amy W. Larson of the National Waterways Conference, David B. Sanford of the American Assn. of Port Authorities, David R. Conrad of the National Wildlife Federation, Susan E. Gilson of the National Assn. of Flood and Stormwater Management Agencies, Sam R. Medlock of the Assn. of State Floodplain Managers, Anthony G. (Tony) Willardson of the Western States Water Council, and a witness representing NOAA. On May 26, the NAS committee will meet in a closed session.

 

Economic Growth Allows Environmental Investment

In comments submitted to CEQ, WCI Pres. Cornel J. Martin asserted that “the goal of economic development unwisely and contrary to Congressional intent is subordinated” in the proposed P&G revisions “to the goal of ecosystem restoration, notwithstanding the CEQ’s press release’s claim that the two are ‘co-equal goals’.”

“WCI supports water resources development that reflects a heightened sensitivity to protecting important environmental values and seeks to produce environmentally sustainable solutions to the nation’s transportation-related water resources development challenges,” Mr. Martin’s statement said.

“At the same time,” it continued, “WCI believes that what allows this great nation the opportunity in the first instance to address important environmental objectives is the nation’s ability to have a robust economy that is strong enough to generate the financial resources that are necessary to address the environmental challenges and opportunities that we face.”

 

ARE PROPOSED CRITERIA ‘WORKABLE FRAMEWORK’?

The National Waterways Conference’s comments, as did those of several other organizations, followed the same theme, arguing that the proposed criteria “elevate environmental considerations at the expense of economic benefits.” NWC’s president, Amy W. Larson, said the CEQ proposal, “as drafted, fails to establish a clear, concise and workable framework to guide the development of water resources projects.”

R. Bruce Josten, executive vice president of the U.S. Chamber of Commerce, was more blunt: “The Chamber has serious concerns with the draft P&S, specifically that it... reveals a clear bias in favor of environmental projects or a no-action alternative and against economic projects; uses broad, vague language that can be exploited by parties seeking to stop a project; creates ambiguous peer review standards; appears to overlay additional mitigation requirements; and provides an unclear role for the local sponsor.”

Other comments: “The P&S should recognize the positive environmental contribution of navigation projects.” – Daniel P. Mecklenborg of Ingram Barge Co....

“Is it reasonable to mandate at least one alternative with non-structural measures... when one is deepening a port to accommodate increased cargo movement possibly as a direct response to the President’s directive on doubling exports?” – James M. Haussener of the California Marine Affairs and Navigation Conference.

“We recommend that the national objective be revised to more explicitly achieve the goal of having environmental and economic considerations be on a par with each other and to more closely reflect the statutory language.” – Robert L. Bendick, Jr., of The Nature Conservancy.

“The principles do not provide agencies with a tool to weigh monetary and non-monetary effects, nor is there a guideline for selecting among plans that may have varying degrees of both effects. This is a very subjective goal, and one that will inevitably subject studies and eventual projects to undue legal exposure.” – Glenn W. Vanselow of Pacific Northwest Waterways Assn.

 

Broad Revision Needed, Dr. Dickey Advises CEQ

One of the most insightful comments to CEQ came from G. Edward Dickey, Ph.D., who was Principal Deputy Assistant Secretary of the Army (Civil Works) in 1983-94, during which time he served two years as the Acting Assistant Secretary. In 1994-98, he was the Corps’ chief of planning.

“The proposed P&S [principles and standards] contain non-operational directions, use concepts and terms which have no broadly accepted definitions, and impose arbitrary analytical demands that have little or no relationship to well-defined decision making,” he said. “They are not developed with an eye towards facilitating development of actual projects that efficiently solve real water resources problems.”

Dr. Dickey added: “Extensive revision of the proposal is essential to provide clear guidance to field planners and non-Federal sponsors desiring to develop productive and sustainable water resources investments that meet Federal criteria for authorization and funding.”

Note: Texts of statements submitted to CEQ are at:  www.whitehouse.gov/administration/eop/ceq/initiatives/PandG/comments.

 

NED Goal Described as ‘Lightning Rod’

WCI representatives have participated in two meetings with senior CEQ staff to discuss concerns over the pending P&G revisions. At the most recent session, which was set up by the National Waterways Alliance, CEQ’s chief of staff, Jonathan K. (Jon) Carson, met with a group of some 30 water resources proponents.

Earlier, Sen. Thad Cochran (Mississippi) arranged for about a dozen flood control and navigation supporters from his state to visit with Terry Breyman, who was then CEQ’s associate director of natural resources. Asked why the P&G revisions did not mention “national economic development” (NED) as one the planning objectives, Mr. Breyman explained that the phrase had become “a lightning rod” for environmentalists.

The President’s Council on Environmental Quality, celebrating its 40th anniversary this year, was established in the National Environmental Policy Act – which President Nixon signed into law on New Year’s Day, 1970. The same legislation mandated preparation of environmental assessments and environmental impact statements.

 

REVIEW PANEL OFFERS STEPS TO SAVE SALMON

Because of low water flows on the Snake River, the NOAA Fisheries Service has proposed reduced “spills” over the four large navigation/hydropower dams on the river to aid young salmon in swimming downstream. Instead, the agency wants to collect the endangered spring/summer chinook and steelhead and barge them past all the dams on both the Snake and Columbia Rivers.

After reviewing the proposal, an independent scientific advisory board set up by the Fisheries Service and the Northwest Power and Conservation Council has recommended a “mixed strategy” – continuing the spills so the fish can migrate naturally over the dams while barging some of the juvenile fish downstream, too.

In another development on the salmon front, the Corps of Engineers has proposed a feasibility study costing as much as $19.8 million to evaluate the possible breaching of the Lower Snake River dams. Such a study could be triggered by a dramatic decline in the four-year average of wild salmon and steelhead runs – a “contingency of last resort” included in a salmon-survival blueprint now before a Federal Court.

 

IWR’s Director Predicts Best Work Yet to Come

At a seminar in mid-April marking the 40th anniversary of the Corps’ Institute for Water Resources (IWR), Robert A. Pietrowsky, its director since 2000, said the milestone was less about the institution itself than “a tribute to the many skilled professionals who have worked here over the last 40 years and their accumulated commitment to excellence.”

“In a sense, despite all the change we have seen, the challenges facing the Corps’ civil works program today still closely mirror those that set the conditions” which led to IWR’s creation, Mr. Pietrowsky said, “that is, to support civil works by anticipating changes in national water resources conditions and to develop, apply and help infuse new policies, procedures, methodologies, software tools, information systems, and training to position the Corps to address these needs.”

With almost 100 water resources profes­sionals in attendance, he predicted that IWR’s “greatest work is yet to come” in tackling the emerging issues of the 21st Century – “working through the challenges of global climate change, developing a contemporary set of principles and standards to guide decision making, ensuring both a sustainable natural and constructed environment, and addressing problems that haven’t even emerged yet.”

 

Water Resources Roles Shifting, Ms. Darcy Says

“IWR is unique because it is developing new ideas and reinvigorating old concepts,” Jo-Ellen Darcy, the Assistant Secretary of the Army (Civil Works), told the IWR seminar. “For the Corps of Engineers to remain relevant in this new world, we must adapt... through a cultural shift [of which] we are but one of the key groups that will further the water resources needs of the nation.”

Federal, state, interstate and private-sector roles in water resources management are changing, she said, with non-Federal interests possessing “both the technical and fiscal capability” to accomplish many traditional Corps missions. “I do not see this evolution as a problem,” she said, “but simply a challenge for us to redefine our roles.”

Ms. Darcy announced that her office had requested and “not without controversy” received authority to serve as the Corps’ “senior sustainability office.” It is “the right step forward,” she said, “as we chose to influ­ence our future rather than to have others direct our future for us.”

 

‘You Can Do It, And We Can Help’

Home Depot’s slogan is “especially relevant to our business in water resources,” believes Steven L. Stockton, the Corps’ Director of Civil Works, who spoke at IWR’s seminar. “There is a Federal interest in Federal-state collaboration in water resources planning,” he says, with state governments “clearly in the lead” role.

In viewing how the Corps will work in the future, Mr. Stockton thinks the first step “being for us to recognize that we can’t do it alone” but that responsibilities for water management “must be tackled through shared authorities and resources.”

He called on IWR to continue to develop “strategies, policies and tools” to help the Corps make the cultural and policy changes needed to realize stronger partnerships, “smarter systems (watershed-based) and regional planning, life-cycle approaches for holistic asset assessment, risk-based management of our capitol stock, and with an end result of a sustainable, resilient water infrastructure.”

 

Court Again Rejects Plea to Shut Chicago’s Locks

For the third time this year, the U.S. Supreme Court refused last week to consider a plea by Michigan and several other states, but not Illinois, to block navigable waterways connecting the Illinois river system with Lake Michigan to prevent aggressive Asian carp from reaching the Great Lakes. “We are pleased that the court has agreed with our position,” said Illinois Atty. Gen. Lisa M. Madigan.

The latest court suit, filed by Michigan Atty. Gen. Michael A. (Mike) Cox, who is running for governor, would have revived a case dating back to 1922 to again separate the lake and river systems by closing Chicago and O’Brien Locks. Before the Chicago Sanitary and Ship Canal was completed in 1900, linking the lakes and inland rivers, the city’s sewage was dumped into Lake Michigan, source of the area’s water supply.

Now, treated sewage flows into the Illinois/Mississippi River system along the same route used by river barges. A recent study conducted by Dr. Joseph P. Schweiterman, a public policy analyst at DePaul University, found that the price tag of closing the Chicago area locks would total $4.7 billion over the next 20 years – far higher than Atty. Gen. Cox’s earlier impact estimate of only $70 million a year.

 

‘If You Can’t Beat ‘Em, Eat ‘Em’: Asian Carp

In Louisiana, it’s on menus as “silverfin.” Further up the Mississippi, chefs are calling it such names as “Kentucky tuna, “Shanghai bass” and “Rock Island sole.”

At Chicago’s Lockwood Restaurant in the posh Palmer House Hotel, Asian carp has proved to be a culinary hit on its own. “Every guest loved it,” said Chef Phillip Foss, who was interviewed on several TV news channels. He offers carp carpaccio, carp chowder, carp ceviche, and broiled carp with grilled fennel.

With numerous restaurants adding carp dishes to their menus, the demand for the tasty, mild flavored but prolific fish – sometimes called “rabbits of the water” – is growing. Fishermen get only about 14 cents a pound for the fish, but some can catch 10,000 to 12,000 pounds a day.

 

13-Mile Flood Barrier Planned to Stop Carp

As an interim risk-reduction measure to keep Asian carp from escaping the Illinois Waterway during flood events and reaching Lake Michigan via other routes, the Corps of Engineers has awarded a $4.5 million contract to a Chicago company to construct a 13-mile-long concrete and wire mesh barrier along the parallel Des Plaines River and old Illinois and Michigan Canal.

The barrier, made of specially fabricated woven wire mesh, will reach from Willow Springs just west of Midway Airport south­west to Romeoville, a few miles north of Rockport. To deter the carp from entering the I&M Canal, the project includes a stone barrier at the flow divide.

“Construction of these measures is crucial to reducing the risk of Asian carp bypassing the barriers,” said Col. Vincent V. Quarles, commander of the Corps’ Chicago District. Electric barriers already work to stop carp swimming up the most direct waterway route, and the new measures are intended to keep the carp from being swept into the adjoining waterways during floods.

 

Barges’ Value Cited in New USDA Study

As required by the Food, Conservation and Energy Act of 2008, the U.S. Department of Agriculture’s Agricultural Marketing Service, in cooperation with DOT, has just released a 15-chapter report entitled Agricultural Transportation: Rural Transportation Issues. It runs more than 600 pages in length.

Agriculture is the largest user of U.S. freight transportation, accounting for 31 percent of all ton-miles transported in 2007, much of it bound overseas. In that year, more than one-third of our corn exports and almost 17 percent of our soybeans were barged to New Orleans. Overall, barges have a 12 percent share of agricultural ton-miles.

“The river system provides bulk, long-haul transportation economically, keeping U.S. products competitive in the global economy,” the USDA study found. “In some areas, they offer competition to other long-haul modes, keeping rates down. Moving more bulk commodities on barges could free capacity of other transportation modes, reducing congestion.”

 

MarAd Finalizes Rule for ‘Marine Highways’

Some 17 months after its “interim final rule” establishing America’s marine highway program was published, the Maritime Administration has issued the final rule. As printed in the Federal Register on April 9, it incorporates some of the 310 recommendations that the agency received during the public comment period, which ended in February 2009.

“Expanding the marine highways can be done in a way that reduces emissions, will require less new infrastructure than land transportation alternatives, generates signifi­cant fuel savings, and can increase resiliency in the surface transportation system,” the document states.

The new program will “strengthen our maritime economy,” Transportation Secy. Ray H. LaHood told the Marine Highways and Logistics Conference last month in suburban Baltimore.

A couple of days after publication of its final rule, MarAd invited public agencies and entities to sponsor marine highway corridors or projects, defined as “an extension of the surface transportation system that can help mitigate congestion-related impacts along a specified land transportation route.” The deadline for submission of such applications is June 11.

OUTLOOK. Congress has set aside $7 million which can be used for marine-highway grants. “It’s not a steak dinner; it’s just a lollipop,” said Larry L. (Butch) Brown, presi­dent of the American Assn. of State Highway and Transportation Officials (AASHTO). He is also director of Mississippi’s DOT.

 

Waybill Studies Verify Water-Compelled Rates

Recent studies by two Minnesota state agencies, the Departments of Agriculture and Transportation, have confirmed that water-compelled railroad rates “produce positive results in the economy, to agriculture and to our national interests,” according to the Upper Mississippi Waterway Assn. (UMWA). Researchers used waybills for more than 63,000 rail shipments of corn, wheat and soybeans in 2007 to compare rates between rail routes with water competition and those without such constraints.

The studies found that “the further a shipment originates from barge transportation, the higher the all-rail rates,” UMWA reported. For example, wheat shipments beginning 100 miles from a barge terminal pay rail rates that are 8.7 percent higher than if originating only 50 miles from water. If the distance from the river is increased to 200 miles, the studies revealed a rate “penalty” of 18.1 percent.

For UMWA, the new studies brought back a vision articulated in 1932 by one of its founders, Charles C. Webber, president of Deere and Webber Co, the forerunner of today’s John Deere & Co. “The only avenue of escape for landlocked shippers handicapped by distance and high [rail] rates to the seaboard,” Mr. Webber believed, “is an outlet to the sea – in this case, the Mississippi River.”

 

IN THE MAINSTREAM...

Maurice S. Owen of Owensboro, Ky., is the new president of Inland Rivers Ports & Terminals, Inc., succeeding Jerry L. Sailors, executive vice president of the Coosa-Alabama River Improvement Assn. Mr. Owen, a former port director of Owensboro Riverport (2000-07), is now vice president-sales and marketing, Yellow Banks River Terminal, LLC...

The American Waterways Operators’ newly elected chairman is George P. Foster of St. Louis, president of JB Marine Service, Inc. Peter H. Stephaich of Pittsburgh, chairman of Campbell Transportation Co., Inc., was named AWO’s vice chairman...

(Pete) Reixach, Jr., executive director and CEO of the Port of Freeport, Tex., since 1988, will take over as chairman of the American Assn. of Port Authorities at its fall meeting. He was elected at AAPA’s recent spring conference...As its “port person of the year,” AAPA selected the U.S. Coast Guard’s outgoing commandant, Adm. Thad W. Allen...

Paul Anderson, a former commissioner on the Federal Maritime Commission (2003-08), has joined the staff of the House Transportation and Infrastructure Committee to work on special projects for Congr. John L. Mica (Florida), the ranking minority member. In 1987-94, Mr. Anderson was an official of Hvide Marine, Inc., now operating as Seabulk Towing, Inc...

William J. Rase, III, director of operations for the Port of Lake Charles (La.), became port director last weekend, succeeding R. Adam McBride, who retired earlier this year... Linda L. Styrk, currently director of seaport marketing at the Port of Seattle, has been promoted to director of the port’s seaport division...

Ducks Unlimited’s new CEO is H. Dale Hall, who was chief of the U.S. Fish and Wildlife Service in the last administration... Susan J. Hedman, environmental and energy counsel to the Illinois attorney general, was chosen to head EPA’s regional office in Chicago...

The Tennessee-Tombigbee Waterway Transportation Museum, under construction in Columbus, Miss., has named three new trustees: Linda Wilkins New of Seagrove Beach, Fla., daughter of Tenn-Tom’s long-time administrator, J. Glover Wilkins; Kenneth A. Wheeler of Paducah, former president of Walker Boat Yard; and Richard H. Leike of Memphis and Columbus, co-founder of Crye-Leike Realtors...

Maj. Gen. William T. (Bill) Grisoli, the Corps of Engineers’ Deputy Commanding General for Civil and Emergency Operations since last December, left in mid-April on a four- to six-month assignment in Afghanistan... Maj. Gen. Don T. Riley, the former Deputy Chief of Engineers who delayed his planned January retirement to lead an Afghanistan mission, is coming home, with retirement ceremonies now planned for June 3-4...

Karen L. Durham-Aguilera, director of Task Force Hope in Louisiana, is moving to Washington this fall to succeed Edward J. Hecker, director of the Corps’ Contingency Operations and Homeland Security, who is retiring... Pete C. Luisa, chief of civil works program development in the programs integration division, has been selected as civil works deputy for the North Atlantic Division’s regional integration team...

Rick D. Granados, navigation business line manager in the Rock Island District, has a new position: regional asset manager for the Mississippi Valley Division (MVD). He will still be based in Rock Island...

Other new MVD assignments include: Dennis O. Norris as chief of operations. He formerly held the same position in the Vicksburg District... Charles E. Shadie as chief of the watershed division and senior water control advisor... Robert H. Fitzgerald as chief of the business technical division...

MOVING ON. Donald C. McCrory, executive director of the International Port of Memphis for the last 27 years, plans to retire in July. The Mississippi River port is the fourth largest on the inland waterways system... In July, Patricia A. Rivers, chief of the programs integration division in the Corps’ military directorate, plans to retire. Succeeding her will be Lloyd C. Caldwell, who is now director of programs in the North Atlantic Division...

 

Heavy Rains Ravage Tennessee, Kentucky

Torrential rains over last weekend led the Cumberland River to flood at Nashville, forcing guests to evacuate the Opryland Hotel and other locations, stopping river traffic and causing at least 17 deaths in the state. In Kentucky, where there were four flood-related deaths, high water closed numerous highways and bridges.

Elsewhere, a dam gate failed at L&D 25 on the Upper Mississippi River near Winfield, Mo. The dam controls navigation depths in the pool above the dam, but Corps officials quickly brought in bulkheads stocked at L&D 17 to block the open dam section before water transportation was affected.

In other incidents, two tows collided about 30 miles downstream from Vicksburg, sinking a barge loaded with pig iron in 60 feet of water. An up-bound 28-barge tow ran aground in the same general vicinity, leaving 10 barges adrift for several hours. Near Grafton, Ill., a 15-barge tow bumped the bottom of the channel, prompting emergency dredging to reestablish a safe channel.

 

In Memoriam...

Floyd E. Dominy, 100, of Boyce, Va., who served as commissioner of the Bureau of Reclamation in four administrations (1959-69) and presided over completion of Glen Canyon, Flaming Gorge and Navajo Dams on the Colorado River. He was the subject of two books on the era of big dam building, Cadillac Desert and Encounters with the Archdruid. [The “archdruid” was David Brower, first director of the Sierra Club and founder of Friends of the Earth.]...

Edward S. (Ned) Reed, 84, executive director and general manager of the Port of New Orleans (1970-85), who was a past chairman of the American Assn. of Port Authorities...

Wayne L. Tolen, 76, former owner of Tolen Marine, Inc., in Paducah... Carlton J. Melton, Sr., 64, of Daphne, Ala., regional vice president of SSA Marine, Inc....

James R. (Whit) Whittingham, 57, the American Trucking Assns.’ long-time government relations manager. He was married to Nancy P. Dorn while she was Assistant Secretary of the Army (Civil Works) in 1991-93...

Col. John B. O’Dowd, USA-Ret., 53, who was District Engineer at New York at the time of the 9/11 attack and more recently vice president of a New York engineering firm, of a heart attack aboard a Louisville-Chicago flight... To their families and friends, we extend our condolences.

 

Many Meetings Planned for Missouri River Study

The Army Corps of Engineers has announced an ambitious schedule of 30 open-house public meetings and 11 tribal-focused sessions “to collect recommendations, suggestions and comments to define the scope of studies” to be conducted for the on-going Missouri River “authorized purposes study.” The meetings start May 25 and extend through August 20, spanning the entire Missouri Basin from Wyoming and Colorado to Iowa and Missouri and also including New Orleans, Memphis and St. Louis (July 7-9) in the Mississippi Valley.

Earlier, in a series of 82 interviews plus electronic surveys and focus-group discussions, a Corps contractor found that about 83 percent said changes were needed in management of the Missouri River system. The eight project purposes, ranked in the order of importance to the respondents: flood-risk management, water supply, water quality, power generation, fish and wildlife habitat, recreation, irrigation and (lastly) navigation.

At last report, the Corps still plans to conduct a flood-like pulse sometime before May 19, but it depends on downstream river levels, water temperature below Gavins Point Dam, and nesting activity by endangered least terns and threatened piping plovers. Downstream flow limits are in place, the Corps said, to reduce or eliminate the pulse if river levels are too high.

 

ON THE HORIZON...

May 6-7, Warrior-Tombigbee Waterway Assn., Perdido Beach, Ala...

May 9-14, PIANC Congress, Liverpool, UK...

May 22, National Maritime Day...

June 8-10, Harbor Safety Committees and Area Maritime Security Committees joint meeting, Jersey City...

June 10, Seamen’s Church Institute’s Silver Bell Awards Dinner, New York...

June 14, Jesse Brent/Merrick Jones Memorial Golf Tournament, Greenville, Miss....

Aug. 11-13, Gulf Intracoastal Canal Assn., New Orleans...

Aug. 24-26, Tennessee-Tombigbee Waterway Opportunities Conference, Point Clear, Ala....

Sept. 8-12, World Dredging Conference, Beijing...

Sept. 19-23, American Assn. of Port Authorities, Halifax, Nova Scotia...

Sept. 19-24, World Canals Conference, Rochester, N.Y....

Sept. 22, PIANC USA, Boston...

Sept. 22-24, National Waterways Conference’s 50th Anniversary Meeting, Boston...

Oct. 4-6, WCI Annual Meeting and Waterways Symposium, St. Paul...

Oct. 13-15, AWO Fall Convention, San Francisco...

Oct. 13-15, Pacific Northwest Waterways Assn., Spokane...

Oct. 13-15, American Shore and Beach Preservation Assn., Charleston, S.C....

Nov. 3-5, Mississippi Water Resources Assn., Bay St. Louis, Miss....

Dec. 2-3, International WorkBoat Show, New Orleans...

Dec. 2-4, Mississippi Valley Flood Control Assn., New Orleans...

COMING NEXT YEAR.

Sept. 13-15, 2011, SmartRivers Conference, New Orleans...

 

 

______________________

Capitol Currents is published by

Waterways Council, Inc.

801 N. Quincy Street, Suite 200

Arlington, VA  22203

703-373-2261

www.waterwayscouncil.org. 

Cornel J. Martin, Publisher

Harry N. Cook, Editor 

Vol. 6, No. 6

Copyright 2010