USACE Civil Works Program: Challenges and Opportunities

California Marine Affairs & Navigation Conference MG John Peabody, P.E. Deputy Commanding General for Civil and Emergency Operations, U.S. Army Corps of Engineers
16 January 2014

US Army Corps of Engineers

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Mission Overview
Navigation Flood Damage Reduction Hurricane & Storm Damage Risk Reduction

Environmental Stewardship

Emergency Response

Regulatory Permits Support for Others

Hydropower

Recreation

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USACE Priorities
Support the Warfighter

Transform Civil Works Respond to Disasters

Prepare for Tomorrow

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Global Agricultural Zones and the Basis for US Greatness

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The 20th Century Golden Age of Infrastructure Construction

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Net Capital Stock Estimates of Civil Works Projects,1928-2009 (in 2009 $)

$300

$250

1983 Peak ~ $250B 2009 ~ $165B

Benign Neglect

Net Capital Stock Billions of 2009 dollars

$200

$150

Vision & Construction

Crisis

$100

$50

Flood Navigation Multipurpose MRT Total

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$0

1920

1940

1960 6

1980

2000

Our Nations Infrastructure GPA:

Roads Railways

D+

Runways

Rivers

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USACE Civil Works Construction Backlog

Backlog of Congressionally Authorized Projects by Business Line
Billions Shore Protection, 10%

Environmental Infrastructure, 5%

$70 $60 $50 $40 $30 $20 $10 $0

$60 billion

Environmental
20%

$2 billion

Reduction, 35%

Flood Damage

Navigation Ports, 20%

Construction Funds (annual)

USACE Backlog
Navigation Inland, 5%

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Long Term Civil Works Funding Trends

Appropriation ($Million in 2012 $) 8000 7000 6000 5000 4000 3000 2000 1000 0 1962 1964 1966 1968 1970 1972 1974 1976 1978 1980 1982 1984 1986 1988 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012
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O&M Constr Invest

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The USACE Program

60

Military
( $ Billions ) 47.7 46.2 42.9

50

40 20.7

38.2
17.2 8.3

37.3 31.6
7.8

30.7
30

19.1

32.1

9.6

25.9 23.0
9.2 8.1 8.1 8.2 14.9 17.8 21.5 23.8

9.7

25.4
7

24.8
6.6

22.9 20.8
6.6 6.6

20

18.7
8.3

18.9

10 10.4 0 10.7

22.4

27.0

29.0

29.9 23.8

27.7 18.4 18.2 16.3 14.2

'01

'02

'03

'04

'05

'06

'07 '08 '09 Fiscal Year

10

11

12

13

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14

15

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Global Navigation & Inland Waterway Investments

China plans to invest $32 Billion in Yangtze River port &navigation development, 2011-15 Brazil is investing $27 Billion in ports over the next 4-5 years The Army Corps of Engineers annual Navigation budget approximates $2 Billion
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National Water Resource Challenges

Governance Climate Change

Federal Budget

Demographic Shifts

Legislative Changes Persistent Conflict Energy Increasing Demand for Water

Aging Infrastructure Environmental Values

Declining Biodiversity Disaster Preparedness and Response

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Globalization
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Transforming Civil Works

Methods of Delivery: Delivering on Commitments

Planning Transform

Budget Development

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Planning Modernization
Determine Federal Interest Authorization Backlog Follow-on Work
Smart Planning

Chiefs Reports

Education & Training

Portfolio Management
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Budget Development
Engaging Stakeholders Watershed Informed Budgeting

Smart Investments
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Management Controls
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Methods of Delivery Deliver on Commitments

Building the Bench

Delivering Value for the Nation: OUTCOMES

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Infrastructure Strategy
Asset Management Life Cycle Management

Replacement Value= $250 B

Kentucky River Lock #2, in service since 1839

Alternative Resources

Accelerate Execution Pilots Obstacles Authorities Re-Invent Operations

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Environmental Restoration & Sustainability Program

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Communicating the Strategy

Congressional Hearings & Briefings Reports Press Releases Presentations Strategic Engagements Brochures

Strategic Messages
Web sites Webinars
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Articles OpOrds & FragOs

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U.S. Ports and Inland Waterways: Vital to our National Economy

Seattle Anacortes Tacoma Kalama Portland Two Harbors Duluth/Superior Portland Boston Detroit Chicago Pittsburgh Toledo Indiana Hbr Cleveland Baltimore Cincinnati St. Louis Memphis Long Beach Baton Rouge Pascagoula Charleston Savannah Jacksonville Huntington New York/NJ Lower Delaware River (9 harbors) Hampton Roads Million Tons Over 100 50 - 100 25 - 50 10 - 25

Richmond Oakland Los Angeles

2 Billion Tons of domestic and import/export cargo annually

N

Barbers Pt Honolulu Valdez

Lake Charles Houston Mobile Texas City Tampa Plaquemines Freeport Port Arthur Matagorda Beaumont New Orleans Corpus Christi S. Louisiana

Port Everglades

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Americas ailing ports invisible amid the countrys failing infrastructure

- Washington Post, 13 Sep 2012
ASCE estimates that it will require an investment of $30 billion twice as much as the Nation is spending today to keep America competitive in a global environment. Whats at risk? $270 billion in U.S. exports $697 billion in GDP 738,000 jobs annually $872 billion in personal income.
Source: ASCE
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Ready for the Panama Canal?

U.S. Harbors 45 or Greater

EAST COAST
NY/NJ (50 underway) Baltimore (50) Hampton Roads (50) Morehead City, NC Charleston, SC

WEST COAST
Seattle/Tacoma (>50) Oakland (50) LA/Long Beach (>50) San Diego (47)

GULF COAST
Mobile, AL New Orleans Houston/Galveston/Texas City Corpus Christi Freeport, TX
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We Cant Wait

Advance infrastructure projects at 5 East Coast ports: NY / NJ Charleston Savannah Jacksonville Miami
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Harbor Deepening Challenges

Study Process: Difficult and lengthy from study to authorization Funding: Federal appropriation process uncertainties Dredging: Escalating costs, placement, environmental mitigation Handling Facilities and Space: Need expanded cargo handling facilities and improved intermodal connections for

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What Can You Do?

Tell the Story Help us Transform Civil Works Collaborate with ALL Stakeholders and Beneficiaries of the Civil Works Program Facilitate a Watershed-Informed approach Help the Nation Prioritize efforts, programs, and projects Support innovative Approaches for Alternative Resourcing
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USACE Vision
Engineering solutions for our Nations toughest challenges.

USACE Mission
Deliver vital public and military engineering services; partnering in peace and war to strengthen our Nations security, energize the economy and reduce risks from disasters.

What will be OUR Legacy?

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Questions & Discussion

US Army Corps of Engineers

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FY16 Budget Development Timeline

3-17 Jan Review of draft FY 2016 Budget EC by HQ BLMs, SMEs, Account Managers 27 Jan FY 2016 Budget EC Major Changes BLM briefs to the MSC CWID Chiefs 31 Jan-14 Feb - MSC Review, Update of draft EC, and Coordination w/ HQ BLMs (Phase II) 3-7 Mar Final draft FY 2016 Budget Development EC to HQ BLM/SMEs/Account Managers for review 7 Mar Posting of Final draft FY 2016 Budget Development EC on Intranet for MSC/District use 31 Mar Publish Final FY 2016 Budget Development EC on Internet 14 Apr-16 May - Planning CoP/MSC CWID Chiefs brief Proposed Continuing GI For FY16 Budget 21 Apr-16-May - BLM priority ranking eligibility of GI studies and RI-Investigations by BL 28 May - Planning CoP/BLM LIR for Continuing GI & RI-I applicable Budget Issue Paper to OASA 30 Apr - MSC CWID Chiefs brief Proposal Continuing CG For FY16 Budget 6 May - BLM priority ranking eligibility of CG projects and RI-Construction by BL 27 May - BCR Changes from FY2015 due to OASA(CW) 4 Jun - BLM LIR for Continuing CG & RI-C applicable Budget Issue Paper to OASA 16 Jun - MSC CWID Chiefs brief Proposal O&M For FY16 Budget 16 Jun - Final MSC Budget Submissions Loaded in CWIFD 17 Jun-22 Jul - BLMs Review, Conduct QA, and assign initial Hqs rank by BL 21 Jul - New Starts and Resumptions and Remaining Items for GI and CG briefings 16 Jun-26 Jul - Balance the Crosswalk tables 23 Jul - Pre-Briefing to PID Chief 24 Jul - Pre-Briefing to DCG and C&EO 23 Jul - Review of draft crosswalk before brief to OASA 28 Jul - Submit and Brief Pre-Final Budget and balanced Crosswalk tables to OASA(CW) NLT 7 Aug - Engagement 1 - Briefing to CCG and MSC Cdrs by ALL on budget submission 13 Aug - Briefing to ASA(CW) on Final Recommended Budget across BLs BUILDING STRONG

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As of 9 Jan 14

Reducing Risk
Initial Risk Zoning
Local State, Local

Absolute protection from floods is not possible must plan for exceedence (Residual Risk) Cannot rely on single structural approach - implement a portfolio of measures

Building Codes

Risk Communication

Federal, State, Local Federal, State, Local, Individual Insurance Individual Federal, State, Local Federal, State, Local

Evacuation Plans

Risk

Natural Storage

Non-Structural (Floodproofing, Elevation, etc)

Structural (Levees, Dams, Floodways)

Federal, State, Local

Residual Risk Identify risks and make decisions based on relative risk recognize not all will get the same protection
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The USACE Program

60

Military
50

Civil Works

( $ billions ) 47.7 42.9

40 20.7 17.2 8.3 19.1

46.2

38.2 32.1
9.7

37.3 31.6
7.8 9.6

30.7
30

25.9 23.0
20 8.1 8.1

9.2

25.4
7

24.8 22.9
6.6

20.8
6.6 6.6

18.7
8.3

18.9
8.2

10 10.4 0 10.7 14.9

17.8

21.5

23.8

22.4

27.0

29.0

29.9 23.8

27.7 18.4 18.2 16.3 14.2

'01

'02

'03

'04

'05

'06

'07

'08

'09

10

11

12

13

14

15

16

Fiscal Year

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To Meet the Challenges, We Need to Change

We are in a non-earmark environment We have funded too many studies/projects at less than capability It takes too long to complete studies and projects Sponsors and stakeholders are concerned about timeliness and cost effectiveness We need emphasis on importance of quality assurance and quality products

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Challenges in CWs Future

Aging infrastructure: Critical need for robust asset management & a long-term recapitalization program Domestic discretionary funding: Need for innovative financing, capital stock divestment, market-based solutions No focus on Americas infrastructure needs and investment need to elevate water infrastructure to national level of attention Competition for water, including increasing environmental & water supply needs Climate change adaptation & water-food-energy nexus
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Trends Influencing CWs Future

Aging infrastructure: Critical need for robust asset management & a long-term recapitalization program Major Floods & Lessons learned: Katrina, 2011 Floods, Super Storm Sandy Focus on sustainability: IWRM perspective, collaborative planning, revised PR&G Climate change adaptation & water-food-energy nexus Competition for water, including increasing environmental & water supply needs Intersection of international water security & USACE OCONUS missions Globalization: Waterborne trade implications, homeland security & international water resources, expansion of Panama Canal Domestic discretionary funding: Need for innovative financing, marketbased solutions

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