America’s Water Resources Infrastructure: A View to the Future Presentation to

1. America’s Water Resources Infrastructure: A View to the Future Presentation to National Waterways Conference Steven L. Stockton, P.E. Director of Civil Works U.S. Army Corps of Engineers March 11, 2009

2. “The List” 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3. Our World Has Changed We need 21st Century Water Management Best Practices Changes in Trade Water Conflicts Between States Population Migration Climate Change Aging Infrastructure Declining Discretionary Funding Growing Backlog in Construction & Maintenance Sedimentation a Bigger Issue Droughts Growing State Water Resources Capabilities Disappearing Wetlands & Coasts

4. Water Resources Challenges Population pressure Increased foreign trade Climate change Aging infrastructure Changing allocation needs Multiple Demands Energy demand - hydro Flood plain & coastal development Vulnerability to attack Threatened ecosystems

5. Future Budget Challenges Dam Safety Major Rehabilitation of Infrastructure Climate Change/ Melting Snowpacks No $ for New Projects Levee Safety

6. A New Era • The era of large Federal single-purpose water projects is over • Water resources community • recognizes need for broader • interest for water resources • planning • There is a need and more desire for collaborative regional planning • It is imperative to invest for the long term

7. Back to the Future Conservation Recreation Multiple Purpose Reservoir Hydropower Agricultural Water Supply Municipal Water Supply Flood Risk Management Wastewater Treatment Re-Regulating Reservoir Navigation

8. Back to the Future "Finally, I urge the Congress to develop more satisfactory procedures for considering and authorizing basin-wide development programs. We area long way still, both in the Executive and legislative Branches, from the kind of comprehensive planning and action that is required if we are to conserve,develop and use our natural resources so that they will be increasingly useful as the years go by. We need to make sure that each legislative authorization and each administrative action, takes us toward -- and not away from -- this goal.“ Harry S. Truman, 1950

9. Presidential Memorandum • Transparency and Open Government • President Obama issued a memorandum to the heads of Executive Departments (Jan 21, 2009): • Government should work together • Government should be participatory • Government should be collaborative

10. Deliver Enduring and Essential Water Resources Solutions Our Goal Focus the talents and energy of the Corps of Engineers on delivering enduring,comprehensive, sustainable and integrated solutions to the Nation’s water resources and related challenges through collaboration with stakeholders (regions, States, local entities, other Federal Entities, etc.), playing a leadership or support role as appropriate to meet today’s and future challenges.

11. Roles the Corps Can Play Collaborative Problem Solver Provider Of Data & Information Provider of Technical Assistance Facilitator & Convener New or Renewed Crisis Manager Policy Maker Resource Provider Regulator Traditional Designer/ Builder Regulator Operator/ Manager

12. New Thinking

13. Partnering with the States: They Favor … • Integrated approach and greater collaboration, partnerships among State, local and Federal agencies • Collective determination of needs and challenges and effective complementary solutions • Anticipation and prioritization of future water resources infrastructure needs • Federal agencies’ use of State water plans to align Federal agency support to States • Federal financial and technical assistance to support the States • Federal leadership in collaborative Watershed - System planning • Unified aims and actions to recommend to Congress: “Integrated Water Resources Planning and Assistance” as a priority Federal mission

14. The States Do NOT Favor… • Federal interference with the States’ leadership role in planning • Criticism of the way they are implementing their water plans • Development of a national water plan as a compilation of single projects • Non-collaborative multi-agency efforts that only meet the needs of the Corps, not the other Federal agencies “We’re from D.C. & we’re here to help you” • Proposed cost B/C ratio criteria for primary purpose projects • Principles & Guidelines that do not meet acceptable thresholds for public safety • Further lengthening of formulation of projects • A plan formulation approach that does not embrace state, local needs and concerns

15. Project Geographical Regions Alaska Maine Washington Minnesota Montana N. Dakota Vt. N.H. New York Oregon Mass. Wisconsin S. Dakota Ct. R.I. Michigan Idaho Wyoming Pennsylvania New Jersey Delaware Maryland Nevada Iowa Nebraska Illinois Ohio Indiana Western Central W.Va. Virginia Utah Colorado Kansas Kentucky California Missouri N. Carolina Tennessee Arizona S.Carolina Oklahoma New Mexico Arkansas Eastern Mississippi Georgia Alabama Texas Florida Louisiana Hawaii

16. Watershed Investment DecisionTool - in a Nutshell Easily accessible framework for comparison and analysis of information relevant to watershed-scale investment decisions • Display complex information to a wide range of users • Accommodate numerous decision criteria • Leverage existing data sets, models and tools • Account for different types or levels of decisions • Support tradeoff analysis across competing • investments • Promote public/private sector integration and • synchronization • Visualize impacts of budget authorization and appropriation • decisions

17. An Example of One Tool Watershed Investment Management Decision Tool Concept: • Make use of existing information • Allow systems view across a portfolio of activities • Red, Amber, Green designations to screen by watershed for: • Flood risk • Earthquake or fire hazard • Population centers • Critical habitat • Water supply zones • Air and water quality • Navigation • Hydropower • Congressional Districts • Support risk assessment • Collaborate with partners and stakeholders on format and criteria for more universal use

18. Partnerships – Key to Success We will: • Work with local or regional watershed councils to develop watershed management plans • Facilitate discussion among stakeholders with complementary or competing water needs • Partner with other Federal agencies to address regional water issues • Provide technical assistance to States and local communities • Share data and information • Improve watershed models in cooperation with others

19. Recommendations for a National Levee Safety Program A Report to Congress from the National Committee on Levee Safety

20. Corps Navigation Mission Provide safe, reliable, efficient, effective and environmentally sustainable waterborne transportation systems for movement of commerce, national security needs, and recreation.

21. The Funding Challenge: Making the Case for Navigation • Vital role in U.S. economy • Aging infrastructure in need of modernization • Growing competition for funds within Corps program and within discretionary portion of Federal Budget • Challenge to balance with expanding missions, like environmental restoration • War on terror and growing deficit add to budget challenge • We can’t do business as usual – resources not there and difficult choices have to be made • We have strong case for investing in navigation, but need to do better job of showing why

22. Inland Marine Transportation System (IMTS) Improvement Report Goal: Improve system reliability Objectives: • Operate the series of locks as a system • Standardize lock and dam operations • Standardize lock and dam maintenance • Optimize channel conditions to support system reliability • Operate within the USACE “Environmental Operating Principles” • Enhance career progression and establish a capable workforce through human resources improvements.

23. Highlights • Identified 25 major business processes, over 100 specific areas for improvements • IMTS Board of Directors (Navigation Division Commanders) • System-wide management, policies, and prioritization • Draft findings: • Improved system reliability • No change to existing chain-of-command or organizational structure of Divisions and Districts • No personnel reductions or re-alignments • Performance aligned with OMB Government Performance Results Act and Asset Management requirements • No impact on local employee bargaining unit agreements

24. So, How Do We Invest in the Future? • Take a Systems Approach: Integrated water • management through a watershed approach and • integrated life-cycle infrastructure management • Build and Sustain Partnerships: • Improve intergovernmental, • inter-organizational cooperation • Use Risk-Informed Decision Making and Communication: Ensure public safety through risk assessment and vigilance of our water infrastructure • Pursue Innovative Financing • Practice Adaptive Management • Use State-of-the-Art Technology: Invest in science, technology, and information management • Plan for hiring, training and retaining to maintain a competitive edge

25. Questions ?

26. Summary • The waterway transportation system is a vital part of our Nation’s Infrastructure/critical to America’s continued growth and prosperity • The Corps is a partner in ensuring waterway transportation infrastructure is remains viable for the Nation • Demands for waterway transportation are increasing requiring improved and reliable infrastructure • Current aging infrastructure challenges are impacting extent of growth of marine and inland waterway traffic • We continue to seek opportunities to improve infrastructure as appropriated funds are available • We need to continue to educate the public on the importance of waterway infrastructure and its present condition

27. Navigation Challenges • Aging Infrastructure/System Reliability • 50% locks > 50 years old • increasing down time or delays • increasing emergency repairs • Funding to support Navigation • O&M flat-lined in constant dollars • Limited construction funds for improvements • Inland Navigation Trust Fund going broke • Increased demands for water transport • Need for increased lock sizes • Competing interests for water • Water supply concerns • Ecosystem restoration • Hydropower • Flood Risk Management

28. Key Emphasis • Reliability & efficiency • Long Term Capital Investment perspective • Investments for the system, not projects • Rigorous valuation & risk assessment programs • Equating the optimum needs with achieving acceptable levels of risk