BUILDING STRONG ® 1 US Army Corps of Engineers BUILDING STRONG ® Civil Works Challenges, Strategies and Priorities Presentation to Pacific Northwest Waterways

BUILDING STRONG® 1

US Army Corps of Engineers

BUILDING STRONG®

Civil Works Challenges, Strategies and Priorities

Presentation to

Pacific Northwest Waterways Association

Steven L. Stockton, P.E.Director of Civil Works

U.S. Army Corps of Engineers

2 March 2010

BUILDING STRONG® 2

Civil Works Value to the Nation

• US Ports and Waterways convey >2B Tons of Commerce • Foreign Trade alone creates >$160 B in Tax Revenues

3% of Nation’s Electricity:$800 M + in power sales

Stewardship of Public Lands11.7 M Acres

Stewardship of Public Lands11.7 M Acres

12EmergencyResponses

12EmergencyResponsesGenerate $18 B + 500 K jobsGenerate $18 B + 500 K jobs

Recreation Areas370 M visitors / yrRecreation Areas370 M visitors / yr

Environmental RestorationEnvironmental Restoration

72,000 Regulatory Permits72,000 Regulatory Permits

Destination for 75%of U.S. Vacations

Destination for 75%of U.S. Vacations

400 miles ofShoreline Protection

400 miles ofShoreline Protection

50% cost of Rail;10% cost of Trucks50% cost of Rail;

10% cost of Trucks

12,000 miles ofCommercial Inland Waterways

12,000 miles ofCommercial Inland Waterways

926 Harbors926 Harbors

~11,750 miles of Levees~11,750 miles of Levees

BUILDING STRONG® 3

Water Resources Challenges Aging Infrastructure• ASCE overall grade of U.S. infrastructure in

2009:“D” Would need $2.2 trillion to fix• Over half of Corps locks, many other

facilities, beyond 50-year “design life, need extensive maintenance & rehabilitation

• Failure poses risk to populations, economy

Globalization• Foreign trade is increasing share of U.S.

economy – could reach 30% by 2010• Inability of ports and inland waterways to

handle greater cargoes could limit economy.

Energy• Development of hydropower as clean source• Role of waterways in transport of coal,

petroleum and natural gas• Volumes of water needed for new sources

BUILDING STRONG® 4

Water Resources ChallengesDemographic shifts• World population to increase 2.2 billion by 2025• U.S. population to reach 440 million by 2050• Population more urbanized, concentrated in

coastal communities at risk from severe weather and lack of fresh water

Persistent Conflict• Population growth leads to increased demand

for scarce water, environmental degradation•>900 million people without access to clean water, >2.5 billion without adequate sanitation

• Terrorist threat – need to protect infrastructure from attack

• U.S. role to promote regional stability

County Growth, 2000-05

Areas with significant water issues

BUILDING STRONG® 5

Water Resources ChallengesEnvironmental Values• Pressure from increased development

impacts natural environment• Developing sustainable water resources

will require cultural shift, lifestyle changes as well as technical innovation

Climate Change• Earlier spring snowmelts, river pulses

seen in western U.S.• Potential to affect all aspects of water

resource management• May exacerbate water scarcities,

lead to increased conflict over uses.

Declining Biodiversity• 3 times as many freshwater species as

land species lost to extinction• Need for habitat restoration

BUILDING STRONG® 6

Water Resources Challenges

Governance• Determining proper roles for Federal,

State, local and non-government entities• Gaps in jurisdiction as watersheds

cross political boundaries• Perceived lack of national direction on

water resource issues

Continued Pressure on Federal Budget

• More older people = more entitlement spending, less available for discretionary programs

• Rigorous analysis needed to ensure projects and programs are prioritized to ensure greatest value for taxpayer funds

BUILDING STRONG® 7

IncreasingDemand forWater

Water Resources Challenges

BUILDING STRONG® 8

USACE’s Campaign Plan

BUILDING STRONG® 9

How We Achieve Our GoalsIntegrated Water Resource

Management• Systems Approach• Collaboration &

Partnering• Risk-Informed Decision

Making & Communication• Adaptive Management• State-of-the Art

Technology

BUILDING STRONG® 10

A Definition:

A holistic focus on water resource challenges and opportunities that reflects coordinated development and management of water, land and related resources while maximizing economic services and environmental quality and ensuring public safety while providing for the sustainability of vital ecosystems

Our Strategy: Integrated Water Resources Management


Systems Approach• Look at river basins,

waterheds and coastal zones as a whole

• Shift focus from individual projects to interdependent system

• Shift from immediate to long-term solutions

• Recognize that any single action triggers one or more responses and reactions in other parts of the system


Inland Marine Transportation System Investment Strategy Team Goals

• Waterways should be planned and managed as systems• Prioritize work • Fund priority work efficiently• Maximize system benefits within funds provided

• Project acquisition plan should be based on efficient project funding once a project commitment is made.

• Realistic risk-based estimates of project costs and schedules at completion of feasibility reports.

• USACE – Industry (IWUB) Team


Collaboration & Partnering• Allow multiple organizations

to contribute to problem-solving• Leverage funding, data and talent

– Efficiencies, given scarce resources

– Sophisticated state and interstate organizations

– Tribes, local governments, non-profit organizations

– Partnering with profit-making organizations a next step


Examples of Collaborative Partnerships

• “Building Strong Relationships for a Sustainable Water

Resources Future” Project• Climate change initiative• Risk management• Shared Vision Planning• Regulatory streamlining - EPA• Focus collaboration efforts – NRCS• GIS Investment Decision tool


Risk-Informed Decision Making& Communication

• Consequence analysis, especially risks to populations

• Forestall possible failure mechanisms

• Quantify & communicate residual risk

• Ask which projects will fail to perform as designed, the likelihood of failure, and the consequences

• Recognize limits in disaster prediction• Recognize limits in protection provided by

structural means


Residual Risk

Shared Flood Risk Management


Adaptive Management• Principle commonly

used in ecosystem restoration

• Measure responses to interventions within systems to adjust planning, construction and operations in response to changing conditions.


State-of-the Art Technology• Research that improves

resiliency of structures

• Updated design criteria

• Improved approaches toplanning & design

• Take advantage of advances in communication, information access, remote sensing, GIS’s & nanotechnology

• Coastal & River Information System


Major Priorities - Short Term (60-120 days)

• Presentation and defense of FY 2011 Budget– Answers to Congressional questions

• Execution of funds made available for FY 2010– ARRA Work: Ensure obligation of entire $4.6 B; Shift funds

to other projects if funded projects stall.

• Completion of WRDA 2007 implementation guidance • Inland Marine Transportation System Investment

Strategy• Operational Condition Assessments (Navigation)• Recreation Roadmap


Major Priorities - Long Term• New Paradigm for Budgeting

– Dialogue on alternate schemes to fund, finance and prioritize CW actions

• Collaboration – Integrated Water Resources Management vision– response to Executive Memorandum on

Transparency & Open Government – Increase opportunities for public participation. – Technology platforms to improve collaboration in

watersheds and systems

• Consider steps to reach goal of 18-month feasibility studies


Major Priorities - Long Term• WRDA 2007 Implementation

– $23 B – largest in a generation– ~900 provisions– Train field to develop draft guidance consistent with policy and

previous guidance. – Corps reform provisions including independent external

peer review, mitigation, Principles and Guidelines.

• Achieve vision for USACE National Flood Risk Management Program – Full intergovernmental partnership and collaboration – Updated Executive Order on Floodplain Management– Expansion of Silver Jackets program – Flood Risk Management Strategy to address USACE role in

assuring All Hazard Protection and resilience of Nation's critical water resources infrastructure

• Fully implement Readiness XXI initiative


Major Priorities - Long Term• Asset Management culture

– Deliver reliable infrastructure through use of risk-based assessments

– Risk-informed strategy applied to budget process – Optimize use of limited resources across multiple

business lines

• Move Regulatory program toward more transparent, clear, consistent process. – Collaboration with Federal, State, Tribal and Local

stakeholders– Decisions based on best science for protection of

aquatic resources


• Stronger partnerships for Stronger partnerships for collaborative problem solvingcollaborative problem solving

• A comprehensive strategy to A comprehensive strategy to inform and educate inform and educate

• Smarter regional planningSmarter regional planning• Advocacy for critical national Advocacy for critical national

water needs water needs • Joint efforts/resources to Joint efforts/resources to

achieve common goalsachieve common goals• Life-cycle approach from holistic Life-cycle approach from holistic

assessment through O&Massessment through O&M• Risk-based managementRisk-based management• Resilient water infrastructureResilient water infrastructure

A Picture of the Future ….A Picture of the Future ….


US Army Corps of Engineers

BUILDING STRONG®


Proposed Guidelines: Water Resources Projects Should:

I. Promote economic development;II. Preserve and restore ecosystem functions and services;III. Promote wise use of floodplains and flood-prone areas;IV. Use a watershed approach;V. Use best available practices, analytical techniques, procedures

and tools;VI. Use a planning process with a level of detail commensurate with

the investment level and type of the study;VII. Account for benefits and costs in appropriate monetary and non-

monetary terms;VIII. Account for significant effects and mitigate any unavoidable

impacts to ecosystem functions and services;IX. Address risk and uncertainty;X. Address public safety;XI. Ensure the planning process is fully transparent; andXII. Promote collaboration.


Principles & Guidelines RevisionPrinciples:

• Water is a valued and limited natural resource that is important to human health and the natural environment.

• The quality and quantity of water resources affects all levels of our society, from the National level to that of the individual citizen.

• Water resources are an important factor in our economy, be it local or National.

• Our society is dependent upon water resources for a myriad of things, including food production and processing, recreation, manufacturing, sanitary waste disposal systems, and transportation.


• What can we do now, within exiting authorities, to foster Integrated Water Recourses (IWRM) Management?

• What are the products of such planning? How they compare with how we define success?

• What is the Federal role in watershed-system planning an approach under IWRM?

• How can we incentivize this approach (look at cost-sharing formulas)?

Something to Think AboutSomething to Think About

• What can we do with cost-sharing to promote greater interest in watershed plans among authorizers?

• What case studies do we have to show value to the nation from this approach and what models should we promote?


0

2000

4000

6000

8000

10000

12000

14000

16000

18000

20000

FY00 FY01 FY02 FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13

$ M

illio

ns

Civil Works Program Overview

Non-Federal Cost Sharing

Operation & Maintenance

Construction

Support for Others

( Reimbursable )

Expenses

FUSRAP

Flood ControlMiss. R. & Tribs.

Investigations

Flood &Coastal

Emergencies &

Regulatory

ARRA Funds


Budgets and Appropriations

*

FY09 FY10 FY10 FY 11Approp. Budget Approp. Budget

Investigations 168 100 160 104Operation & Maint. 2,202 2,504 2,400 2,361Construction 2,142 1,718 2,031 1,690Mississippi River & Tribs. 384 248 340 240Regulatory Program 183 190 190 193Flood Cont. & Coastal Emerg. 0 41 0 30F.U.S.R.A.P. 140 134 134 130Expenses 179 184 185 185ASA(CW) 4 6 5 6Total Regular 5,361 5,125 5,445 4,939Supplemental Approps. 6,558Stimulus Bill 4,600Total 16,520


78

105

180

29

5757

134

24

Flood Risk Management

Aquatic Ecosystem Restoration

Navigation

Folsom Dam

Upper MississippiRiver Restoration

Canton Lake

NY / NJ HarborMcCook & Thornton Reservior 40

ClearwaterLake

Mississippi River Levees

Herbert Hoover Dike

Portugues andBucana Rivers, PR

South FloridaEcosystem Restoration

Wolf Creek Dam

Center Hill Dam

Olmsted Lock & Dam

136136

21

Major Construction Projects( $10 M or More in FY11 Budget )

20HamiltonAirfield

WetlandsRestoration

25 Santa Ana RiverMainstem

78Missouri R. Fish &Wildlife Recovery

36DoverDam

40

40

78

137 Columbia R.Fish Mitigation

4747Mississippi RiverChannel Improvement

12

10

Napa RiverSalt MarshRestoration

Sacramento RiverBank Protection

11 Dade County

10Little Calumet River

17

LouisianaCoastal AreaEcosystemRestoration

10 Rio GrandeFloodway

Hydropower

11 Garrison Dam

1212

EmsworthLock & Dam

12Rio PuertoNuevo, PR

10Lower ColoradoRiver Basin

15 Bluestone Lake


FY11 Budget by Business Line

Flood Risk Mgt

Hydropower

Navigation

Environmental

Regulatory

Recreation

Emerg Mgt

Other

$1,549 M

$207 M

$1,653 M

$824 M

$193 M

$280 M

$195 M

$34 M


Civil Works Priorities• Transforming the Program to meet 21st

Century needs

• Flood Risk Management

• Contingency Planning & Response

• Watersheds & Systems

• Knowledge Management

• Asset Management & Infrastructure Recapitalization

• Regulatory Program


($1.746 B) Navigation (32%)

($1.865 B) Flood Risk (34%)Management

($940 M) Ecosystem (18%)Restoration & Infrastructure

($211 M) Hydropower (4%)

($284 M) Recreation & Natural (5%)Resource Management

($190 M) Regulatory Program: (3%)Wetlands & Waterways

($14 M) Disaster Preparedness (<1%)& Response

($5 M) Water Supply (<1%)

(FY 2010 Appropriation)

U.S. Army Civil Works ProgramPreserving the Strength of the Nation

Lock and Dam 15 ( Mississippi River ) Lock and Dam 15 ( Mississippi River )

Flood Wall ( Williamson, KY )Flood Wall ( Williamson, KY )

EvergladesEverglades

Dredge ESSAYONS ( Coos Bay, OR ) Dredge ESSAYONS ( Coos Bay, OR )

Bonneville II Powerhouse ( Washington ) Bonneville II Powerhouse ( Washington )

Lake Seminole ( Mobile District ) Lake Seminole ( Mobile District )

Deliver enduring, comprehensive,sustainable, and integrated solutions to

the Nation’s water resources and related challenges

through collaboration withour stakeholders

( Regions, States, localities, Tribes, other Federal agencies )


RegulatorRegulator

CrisisCrisisManagerManager

PolicyPolicyMakerMaker

Designer /Designer /BuilderBuilder PlannerPlanner

ResourceResourceProviderProvider

Operator /Operator /ManagerManager

TraditionalUSACE Role

Era of large federal,single-purpose water

projects is over.…………………….

Role of USACE assole decision makerand technical expertfor water solutions

is changing

Water resources community

recognizes need formore transparency and

engagement inwater resources

Planning

There is a need and more desire for collaborative

regional planning

New / RenewedUSACE Role

Provider ofProvider ofInformationInformation

andand Data Data

Provider ofProvider ofTechnicalTechnical

AssistanceAssistance

CollaborativeCollaborativeProblemProblemSolverSolver

FacilitatorFacilitatorandand

ConvenerConvener

New Operating Reality


New ThinkingFocusFocus FromFrom ToTo

• SUCCESS =SUCCESS =• CRITERIACRITERIA

• WORKWORK

• KNOWLEDGEKNOWLEDGE

• STYLESTYLE

• MONEYMONEY

• LIFE CYCLELIFE CYCLE

• ProjectsProjects• NED benefits 1stNED benefits 1st

• Stay in your functional Stay in your functional lanelane

• Knowledge is powerKnowledge is power

• Follow SOPs as Follow SOPs as recipesrecipes

• Save Federal $Save Federal $• Plan and buildPlan and build

• Comprehensive PlansComprehensive Plans• More balanced NED, RED, More balanced NED, RED,

EQ, OSE benefitsEQ, OSE benefits• Seek horizontal integrationSeek horizontal integration

• Share knowledgeShare knowledge

• Think creatively, consider Think creatively, consider risks, think systemsrisks, think systems

• Leverage resourcesLeverage resources

• Plan, fund, monitor for full Plan, fund, monitor for full project life cycleproject life cycle


Innovative Financing• Go beyond traditional

government appropriations

• Public-private partnerships

• Adjustable cost-sharing requirements

• Revised funding prioritization

• User-based fees

• Federal budget will be increasingly consumed by health care, entitlements, military operations and interest on debt, leaving little for discretionary spending


• What can we do now, within exiting authorities, to foster Integrated Water Resources (IWRM) Management?

• What are the products of such planning? How they compare with how we define success?

• What is the Federal role in watershed-system planning an approach under IWRM?

• How can we incentivize this approach (look at cost-sharing formulas)?

Something to Think AboutSomething to Think About

• What can we do with cost-sharing to promote greater interest in watershed plans among authorizers?

• What case studies do we have to show value to the nation from this approach and what models should we promote?

Documents

BUILDING STRONG ® 1 US Army Corps of Engineers BUILDING STRONG ® Civil Works Challenges, Strategies and Priorities Presentation to Pacific Northwest Waterways