Energy and Water Development Appropriations Bill substantially increases funding to the Army Corps of Engineers for waterway and port infrastructure projects during fiscal year 2016.
The Senate Appropriations Committee approved legislation Thursday that substantially increases funding to the Army Corps of Engineers for waterway and port infrastructure projects during fiscal year 2016. The measure notably increases disbursements from the Harbor Maintenance Trust Fund and attempts to address donor equity issues as recommended in last year’s Water Resources and Reform Development Act.
The committee passed the Energy and Water Development Appropriations Bill by a 26-4 vote.
The House passed its version of the water development bill at the beginning of May.
The bill contains $5.5 billion for Corps of Engineers, an increase of $45 million over fiscal year 2015’s enacted level and $768 million more than the president’s budget request. Specifically, the bill provides $2.5 billion for navigation projects and studies, including $1.25 billion in funding from the Harbor Maintenance Trust Fund and full use of estimated annual revenues from the Inland Waterways Trust Fund, and $1.4 billion to support flood and storm damage reduction activities, including $310 million for the most critical dam safety improvements.
Many shippers that pay the Harbor Maintenance Tax on their cargo operate out of ports that don’t require much maintenance dredging because they are naturally deep or don’t silt up with river runoff. Several of those ports complain that they don’t receive any benefit from the program. A provision in the appropriations bill pushed by Sen. Patty Murray, D-Wash., authorizes $25 million for so-called “donor ports” to use for other infrastructure projects. The money can also be used for rebates to shippers, something the ports of Seattle and Tacoma are interested in to combat what they allege is cargo diversion to the Canadian port of Vancouver, which doesn’t collect a dredging tax.
“Thanks to the efforts of Sen. Murray, customers calling on Puget Sound ports will finally feel like they are getting something for their money. That’s called customer service,” Port of Tacoma CEO John Wolfe said in a statement.
“Last year’s legislation was the first time Congress recognized what we in the Pacific Northwest have been facing for years — a cost disadvantage when compared with Canadian ports because of U.S. tax policy,” added Port of Seattle CEO Ted Fick. “By funding Section 2106, the Senate has provided us with a new tool to help level the playing field and improve Puget Sound’s competitiveness.”
The bill specifies that Olmsted Lock and Dam will receive $180 million and the Lower Mon 2, 3, 4 project, $52 million. The Army secretary will determine the allocations of the additional $108 million toward the other IWTF-priority navigation projects using the 2010 Capital Development Plan list of priorities and not the new 20-year plan the agency is developing for submission to Congress on June 10.
In the bill, the Corps will receive $29 million in fiscal year 2016 to restart construction of the high priority Chickamauga Lock, noted Senate Energy and Water Development Appropriations Subcommittee Chairman Lamar Alexander, R-Tenn.
The Corps’ Operations and Maintenance (O&M) account funding level through the bill will be $2.909 billion, nearly $199 million higher than the Obama administration’s fiscal year 2016 budget request. Additional O&M funds were provided for deep-draft harbors and channels ($135 million), inland waterways ($45 million), and small harbors and channels ($50 million).
Waterways Council Inc., a trade association representing the interests of commercial users of the inland waterways system, said the money to modernize the nation’s inland waterways will facilitate anticipated record export growth.
Senate committee approves increased Corps funds
