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American Association of Port Authorities703.684.5700 • www.aapa-ports.org

Pacific Northwest Waterways Association

Susan MonteverdeVice President of Government RelationsAmerican Association of Port Authorities smonteverde@aapa-ports.org

March 13, 2017

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Seaports Deliver Prosperity

For American workers, consumers and communities seaports deliver vital goods and services to consumers, ship U.S. exports, create jobs and support local and national economic growth.

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2016 Federal Programs and Ports

• DOT -$160.4 million first-year FASTLANE Grants to seaports – Freight Focused

• DOT -$61.8 million seaport TIGER funds

• FEMA -$27.3 million in port security grants given to AAPA members seaports

• EPA - $11.5 million of the $26.5 million Diesel Emissions Reduction Act (DERA) grants for 12 seaport projects

• Corps of Engineers • Increased HMT Funds • First payments - $25 million

for Donor and Energy Transfer Ports

• WRDA-passed

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CONGRESS PASSES WIIN

• Returns to a two-year schedule• Reauthorizes several seaport deepening projects• Modernizes cost-share for deepening• HMT

• Stabilizes HMT Spending, Ensuring Continued Progress Towards Full Use• Permanent full-use taken out

• Extends the HMT Donor and Energy Transfer program• Makes technical revisions and streamlining provisions

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AAPA’s Focus On the New Administration/Congress

• TRADE

• INFRASTRUCTURE

• TAX REFORM

• SANCTUARY CITIES

• ENVIRONMENT

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President –Elect Trump’s 100 Day Pledge

• Regulatory Reform• Withdrawal from Trade Agreements

• NAFTA• Trans-Pacific Partnership

• Label China a currency manipulator – duties could raise up to 45%• Identify all foreign trading abuses that unfairly impact American

workers• Lift restrictions on energy production – more exports• Cancel U.N. climate change programs and use the money to fix

America’s water and environmental infrastructure • Cancel all federal funding to sanctuary cities

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Early Action By President Trump

• Freeze on Federal Hiring –CBP exempt

• Withdrawal from TPP• Expedited environmental

review for priority infrastructure projects

• Ban on discretionary funding to sanctuary jurisdictions

• Review of Waters of the U.S. rule

• 2 Regulatory reform and regulatory reduction EO

• Appointments of DHS, DOT, Commerce, EPA and DOE Secretaries• No nominees for Corps,

MARAD or USTR

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Trade• Withdrawal from Trade Agreements

• Trans Pacific Partnership• NAFTA – Canada and Mexico• T-TIP with EU

• Increasing Tariffs on Imports• Border Adjustment Tax • Stricter trade enforcement• China currency manipulator

• Promoting Manufacturing • Buy America• Penalize and punish U.S. manufacturers who move jobs out of the U.S.

• Reorganization of Department of Commerce • Eliminate International Trade Administration

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What is the TPP?

• The Trans-Pacific Partnership (TPP) writes the rules for global trade—rules that will help increase Made-in-America exports, grow the American economy, support well-paying American jobs, and strengthen the American middle class. (source USTR)

• Australia• Canada• Japan• Malaysia• Mexico• Peru• United States• Vietnam• Chile• Brunei• Singapore• New Zealand

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$1 Trillion for Infrastructure Over 10 years

• Encouraging P3’s a priority – tax incentives

• Highway, bridges and airports often a priority

• Need to start in 90 days• Focus on jobs and

geographic diversity• Need to highlight port

needs

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Infrastructure – and Seaports- Can P3 Work For Seaports?

• Waterside – Modernize and fully maintain federal navigation channels• Construction• HMT full Use

• Landside – Eliminate Bottlenecks and Expand Capacity• Increase multi-modal

funding

• Enhance the environment and build resilience• DERA• NOAA

• Secure America ports and borders • Cyber• Port Security Grants

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Port Infrastructure NeedsLandside Need

• $29 billion need identified in AAPA Report State of Freight including nearly $2 billion in TIGER needs

• DERA• Port Security Grants

Waterside • Use $9 billion in the

HMTF to address backlog• Fulling use HMT revenues

(current target for FY 2017 only 71%)

• Fully Fund authorized construction projects -$3.1B – at current funding level it would take 20 years to complete.

General Stevedoring Council's New York Luncheon

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STATE OF FREIGHT II/ AAPA and AASHTO REPORT

29 States 6202 Projects $258,698,283,920

• Rail - 10 states provided freight rail needs at $5.9 billion for 270 projects.

• Distribution - Four states provided distribution project needs at $581,620,200 for 25 projects. An additional 6 states provided 27 projects with no cost estimates, bringing the total project number up to 57 for 10 states.

• Inland Waterway - 13 states submitted a total of 365 inland waterway surface transportation projects. Seven states submitted 298 projects with projected costs totaling $13 billion.

• Highway – 3,152 totaling $96 billion from 12 states were reported and eight states submitted projects with no cost estimates attached to them.

• Undefined- Three states submitted projects without breaking projects out into modes and costs for a total of 747 projects and $147 billion.

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Sanctuary Cities Executive Order

• Could impact public infrastructure funds as ports are state or local entities• DOT – FAST Lane, TIGER• DHS – Port Security grants• EPA – DERA port emissions grants• EDA – Economic Development Grants• MARAD • Any new Infrastructure funding program• State FAST Act and Corps most Corps programs not impacted.

• AAPA letter to the Attorney General - Port grants should be exempt as we must comply with federal security laws

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Tax Reform

• A mechanism to address the problems with the HMT • Make HMT spending mandatory• Determine a formula for spending

• Provide permanent HMT funding for donor and energy transfer ports

• Provide a mechanism to allow more funding for maintenance needs

• Offset needed - $20 billion

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AAPA FY 2017 Appropriations Priorities

• Waterside• HMT• Construction

• Landside• TIGER• FAST Lane

• Environment• DERA Grants

• Security• Port Security Grants• CBP Staffing

• Trade

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FY 2017 Energy and Water Recommendations

Above the President’s Budget Request

• $381.3 million additional Operations and Maintenance account funding included in the House bill

• $325.25 million additional Construction funding included in the House bill

• $50 million Donor and Energy Transfer Port funding in the Senate bill and

• $15 million additional Investigations funding in the Senate bill

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OTHER FY 2017 Recommendations

General Stevedoring Council's New York Luncheon

• TIGER – Support the Senate number of $525 million versus House $450 million

• DERA – Support House number of $100 million versus Senate $25 million

• Port Security Grant – Both House and Senate are $100 Million

• CBP – Support 500 new maritime officers – not in either bill

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Environment and the Trump Budget

EPA Budget• Proposed 25% cut• DERA Grants• EPA Port’s Program

• Community Outreach

• Focus on core requirementsOther Environmental Programs

• Executive Order on Environmental Streamlining• CEQ in Charge

• All Climate Change Programs Cut

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Security

General Stevedoring Council's New York Luncheon

• Port Security Grants• 40% cut proposed in Trump budget

• CBP Staffing• Over 500 short in the maritime environment• Shifting the cost to the private sector• Trump priority is the border with Mexico.

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Exciting Time to be in Washington!

General Stevedoring Council's New York Luncheon