Washington Port Issues

1. Washington Port Issues Washington State Freight Advisory Committee Seattle, WA December 9, 2013

2. Pacific Northwest Waterways Association (PNWA) is: • Non-profit trade association that advocates for federal policies & funding in support of regional economic development • Over 130 members in WA, OR, ID, and CA, including: • Public ports and municipalities • Agriculture and forest products producers • Utilities • Towboaters, steamship operators, river pilots and bar pilots Port of Chinook Port of Ilwaco

3. Washington’sPorts …A Microcosm of the National Ports Community • Deep draft navigation • Puget Sound • Lower Columbia River • Inland navigation • Columbia Snake River System • Small ports • Puget Sound • Lower Columbia River

4. The Bottom Line … Ports and Navigation Stakeholders are Competing for a Steadily Shrinking Federal Pie

5. Congress’ Ability of Improve Corps • Budgets Has Been Reduced • History of Congressionally-directed project funding • FY2011 – Agency work plan at FY2010 spending levels • FY2012 - “Additional funding” in House & Senate bills • FY2013 – “Additional funding” in House & Senate bills … … year-long CR & sequestration = no additional funding • FY2014 – Shutdown, CR … more to come in January

6. The Fix: Harbor Maintenance Trust Fund (HMTF) Tax on the value of imports & domestic cargo Intended to fund 100% of deep draft and coastal O&M – dredging, jetties, etc. Since 2003, only about half of collections have been spent Unspent “surplus” is over $8B … can’t be recouped Port of Seattle Port of Ilwaco Port of Vancouver

7. Senate WRDA Approach • Phased in approach to full spending in 2020 • Prioritizes High Use Deep Draft (HUDD) Ports , Great Lakes • Addresses cargo diversion • Provides rebate for “donor ports” • Allows for expanded uses • Berth dredging, contaminated sediment • Falls short for small ports • No funding until HUDD projects fully maintained

8. House WRRDA Approach • Phased in approach – reaches 80% of annual receipts in 2020 • Expanded uses at outset • 5% for berth dredging, contaminated sediment • Small port set aside up front • 10% for first two years, future consideration

9. Maritime Goods Movement Act Comprehensive solution for all ports Establishes Maritime Goods Movement Fee, replaces HMTF Ensures full use of annual receipts Restores a level playing field for U.S. ports Provides funding for “super donor” ports Establishes DOT grant program to invest in intermodal infrastructure Permanent small port set aside up front

10. Inland Waterways Trust Fund (IWTF) 20 cent/gallon diesel tax Collected from towboaters on Columbia/Snake, Mississippi, Ohio and other inland waterways Intended to fund 50% of inland construction and major rehabs Current needs exceed collections Olmsted Lock & Dam, Ohio River

11. Inland Waterways Trust Fund (IWTF) • Stakeholder proposals: • Increase fuel tax • Revise cost-share formula • Improve Corps project delivery process • Administration proposals: • Keep fuel tax • Impose lockage or towboat fees Tidewater tow in McNary navlock, Columbia River

12. Inland Waterways Trust Fund (IWTF) • PNWA: working with Portland & Walla Walla districts • Goals: • Anticipate repair needs • Protect reliability of system • Minimize NW need to draw on IWTF Little Goose navlock, Snake River

13. Opportunities to Stay Informed Website: www.pnwa.net Nor’wester newsletter Kristin MeiraExecutive Directorkristin.meira@pnwa.net