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Wednesday, October 23, 2013

Army Corps of Engineers Water Resource Authorization, Appropriations and Activities


Nicole T. Carter
Specialist in Natural Resources Policy

Charles V. Stern
Specialist in Natural Resources Policy

The U.S. Army Corps of Engineers undertakes activities to maintain navigable channels, reduce flood and storm damage, and restore aquatic ecosystems. Congress directs the Corps through authorizations, appropriations, and oversight of its studies, construction projects, and other activities. This report summarizes congressional authorization and appropriations processes for the Corps. It also discusses agency activities under general authorities. 

Omnibus Authorization Legislation.
Congress generally authorizes numerous Corps activities and provides policy direction in an omnibus Corps authorization bill, typically called the Water Resources Development Act (WRDA). The most recent WRDA was enacted in 2007 (P.L. 110- 114). WRDAs historically are omnibus bills including many provisions for site-specific activities. How to construct a WRDA bill that complied with House rules related to a moratorium on earmarks complicated WRDA consideration in the 112
th Congress. The House is set to consider the omnibus Corps authorization and policy bill, H.R. 3080, the Water Resources Reform and Development Act (WRRDA).

The Senate passed WRDA 2013, S. 601, on May 15, 2013. S. 601 would authorize Corps activities and modifications of existing authorizations that meet certain criteria; the bill includes numerous other provisions as it attempts to address issues with the duration and cost of Corps projects. The bill also would establish new procedures for using Harbor Maintenance Trust Fund monies, in an effort to expand spending above current levels. 

Agency Appropriations.
Federal funding for Corps civil works activities is provided in annual Energy and Water Development appropriations acts or supplemental appropriations acts. Annual Corps civil works appropriations have ranged from $4.5 billion to $5.5 billion in the last decade. An increasing share of the agency’s appropriations is used for operations and maintenance. Another trend has been increasing emergency supplemental appropriations. From 1987 to 2013, Congress appropriated $32.2 billion in Corps supplemental funding. Of this funding, $30.8 billion came through acts passed between 2003 and 2013. This funding was more than half of the Corps’ regular appropriations from 2003 through 2013 ($55 billion). In part because of competition for funds and because Corps authorizations outpace appropriations, many authorized activities have not received appropriations. There is a backlog of more than 1,000 authorized studies and construction projects. In recent years, few new studies and new construction activities have been in either the President’s budget request or enacted appropriations. 

Standard Project Development.
The standard process for a Corps project requires two separate congressional authorizations—one for investigation and one for construction—as well as appropriations. The investigation phase starts with Congress authorizing a study; if it is funded, the Corps conducts an initial reconnaissance study followed by a more detailed feasibility study. Congressional authorization for construction is based on the feasibility study. For most activities, Congress requires a nonfederal sponsor to share some portion of study and construction costs. These cost-sharing requirements vary by the type of project. For many project types (e.g., levees), nonfederal sponsors are responsible for operation and maintenance once construction is complete. 

Other Corps Activities and Authorities.
Although the project development process just described is standard, there are exceptions. Congress has granted the Corps some general authorities to undertake some studies, small projects, technical assistance, and emergency actions such as flood-fighting and repair of damaged levees. Additionally, the Corps conducts emergency response actions directed by the Federal Emergency Management Agency.

Date of Report: October 18, 2013
Number of Pages: 25
Order Number: R41243
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Inland Waterways: Recent Proposals and Issues for Congress


Charles V. Stern
Specialist in Natural Resources Policy

Inland waterways are a significant part of the nation’s transportation system. Because of the national economic benefits of maritime transport, the federal government has invested in navigation infrastructure for two centuries. Commercial barge shippers and other waterway users receive significant support through federal funding for operational costs, capital expenditures, and major rehabilitation on inland waterways. Since the Water Resources Development Act of 1986, expenditures for construction and major rehabilitation projects on inland waterways have been cost-shared on a 50/50 basis between the federal government and commercial users through the Inland Waterways Trust Fund (IWTF). Operations and maintenance costs for inland waterways (which typically exceed construction and major rehabilitation costs) are a 100% federal responsibility.

Future financing for the inland waterway system is uncertain. The IWTF is supported by a $0.20 per gallon tax on commercial barge fuel, but its balance has declined significantly since 2005 due to a combination of increased appropriations, cost overruns, and decreased revenues. Without changes to the current financing system, IWTF spending is likely to be limited.

The Obama Administration recommends replacing the fuel tax with user fees that would increase revenues and potentially allow for more spending on inland waterways projects. Similar to prior administrations, the Obama Administration has regularly submitted proposals to Congress to raise inland waterways user fees. Congress and industry interests have rejected these proposals. In 2010, the Inland Waterways Users Board (IWUB), a federal advisory committee advising the U.S. Army Corps of Engineers on inland waterways, endorsed an alternative proposal that is supported by many barge industry interests. The proposal would increase the fuel tax by $0.06-$0.09 per gallon, but would require the federal government to cover all project costs for dams and rehabilitation that are currently shared with the IWTF. To date, no major changes to the inland waterway financing system have been enacted.

The user industry (including the barge industry and agricultural groups) argues that its recommended changes are necessary to shore up the trust fund, improve deteriorating infrastructure, and distribute costs equitably among beneficiaries (e.g., more funding for dams by federal taxpayer beneficiaries). The Obama Administration agrees that infrastructure upgrades are needed, but argues against shifting these costs to the federal government and instead proposes higher user fees. Some taxpayer and environmental groups favor increasing nonfederal costs not just for construction, but also for operation and maintenance expenses that are not cost-shared.

Changes to inland waterways financing are proposed in the 113
th Congress. S. 601, as passed by the Senate, would authorize changes to the project delivery process, alter the cost-sharing requirements for some projects, and exempt from cost-sharing requirements a project (the Olmsted Locks and Dam) that has required the majority of IWTF appropriations in recent years. It would not alter the fuel tax. H.R. 3080, as proposed in the House, would make project delivery changes, authorize studies on potential new revenue sources for the IWTF, and reduce the cost sharing for the Olmsted project. It would not alter cost-sharing requirements for other projects or make changes to the fuel tax. Two other bills, S. 407 and H.R. 1149, would enact much of the aforementioned user proposal, including fuel tax increases of $0.09 and $0.06 per gallon, respectively. In considering legislation related to inland waterways, Congress may consider the appropriate cost share between the federal government and users, the appropriate type of user fee to fund the nonfederal share, preferred funding levels, and other related questions.

Date of Report: October 18, 2013
Number of Pages: 29
Order Number: R41430
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Monday, October 21, 2013

The Great Lakes Restoration Initiative: Background and Issues


Pervaze A. Sheikh
Specialist in Natural Resources Policy

The Great Lakes ecosystem is recognized by many as an international natural resource that has been altered by human activities and climate variability. These alterations have led to degraded water quality, diminished habitat, lower native fish and wildlife populations, and an altered ecosystem. In response, the federal governments of the United States and Canada and the state and provincial governments in the Great Lakes basin are implementing several restoration activities. These activities range from mitigating the harmful effects of toxic substances in lake waters to restoring fish habitat.

Most laws and efforts in the past addressed specific issues in the Great Lakes; a few addressed issues at the ecosystem level. This caused the Government Accountability Office and others to express the need for initiating and implementing a comprehensive approach for restoring the Great Lakes ecosystem. In 2010, the Great Lakes Restoration Initiative (GLRI) was proposed and implemented by the Obama Administration. The aim of GLRI is to restore the Great Lakes ecosystem under one initiative. Specifically, the GLRI is to restore and maintain the chemical, physical and biological integrity of the Great Lakes Basin Ecosystem by directing activities to address five focus areas: (1) toxic substances and Areas of Concern (these are areas in the Great Lakes that are environmentally degraded); (2) invasive species; (3) nearshore health and nonpoint source pollution; (4) habitat and wildlife protection and restoration; and (5) accountability, monitoring, evaluation, communication, and partnerships.

The Environmental Protection Agency (EPA) is the lead federal agency for implementing and administering GLRI. The EPA has received authority to distribute appropriated funds to several federal agencies, which then undertake restoration activities and projects. The EPA also administers grant programs to fund nonfederal projects and activities related to restoration. An interagency Great Lakes Task Force oversees the implementation of GLRI and created a strategy to guide restoration. The strategy (referred to as the Action Plan) provides a framework for restoring the Great Lakes ecosystem under GLRI from 2010 through 2014. For each focus area under the GLRI, the Action Plan provides a problem statement, a set of goals, interim objectives, progress measures, final targets, and principal activities for restoring the ecosystem. Restoration activities are being done under existing federal authorities. The GLRI has received approximately $1.37 billion in appropriated funds since FY2010.

The scope and scale of this restoration initiative have led some to question its direction and duration. The GLRI does not specify what a restored ecosystem might look like, nor does it estimate how long restoration activities will need to be conducted, and how much restoration might cost. Some other questions surrounding this initiative include how the GLRI is governed and how federal and state restoration efforts are coordinated. Furthermore, GLRI remains an administrative initiative; there is no law that specifically authorizes GLRI, though Congress has appropriated funds to implement the program. Congress might consider these questions in oversight hearings or in legislation during the 113
th Congress. Companion bills have been introduced in the 113th Congress to address GLRI. S. 1232 and H.R. 2773 would establish an administrative and management structure for restoration activities in the Great Lakes, authorize GLRI and appropriations for its implementation, specify the scope and function of GLRI, and authorize the coordinating role of the Great Lakes Interagency Task Force.

Date of Report: September 30, 2013
Number of Pages: 22
Order Number: R43249
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