USACE Civil Works Program: Challenges and Opportunities Planning Workshop
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1 USACE Civil Works Program: Challenges and Opportunities Planning Workshop MG John Peabody, P.E. Deputy Commanding General Civil and Emergency Operations U.S. Army Corps of Engineers 2 June, 2015 US Army Corps of Engineers
2 The United States: The Inevitable Empire? 2
3 1927 vs Mississippi River Record Flood: From Levees Only to Room for the River 1927 Flood = 16.8 M acres (Challenge) 2011 Flood = 6.35 M acres (Response) $230 B damages prevented - $612 B since to 1 ROI $7 B in crop damages prevented 4.5 million people protected $3B Annual Transportation Rate Savings 3
4 Grand Winner: ASCE Outstanding Civil Engineering Achievement Award! We Deliver Excellence! The American Society of Civil Engineers (ASCE) awarded USACE s Inner Harbor Navigation Canal Surge Barrier, part of the Hurricane & Storm Damage Risk Reduction System, New Orleans, LA, the 2014 Outstanding Civil Engineering Achievement (OCEA) Award on March 20, First Corps project winner in the award s 54 year history! $1.35 B design-build project is a credit to our team: the Corps, State of Louisiana, industry, academia, and community we serve.
5 CW s Economic Benefits & Revenues to Treasury ( Average) Each dollar spent on the USACE Civil Works program generated ~ $16 in economic benefits and $5 in revenues to the U.S. Treasury. Program NED Benefits (Billions of Dollars) Net NED Benefits (Billions of Dollars) U.S. Treasury Revenues (Billions of Dollars) Flood Risk Management $59.47 $58.84 $18.90 Coastal Navigation $9.47 $8.70 $3.70 Inland Navigation $8.10 $7.51 $2.07 Water Supply $7.00 $6.98 $0.09 Hydropower $2.30 $2.11 $1.37 Recreation $3.20 $2.91 $1.13 Leases and Sales $0.03 Total Annual NED $89.54 $87.05 $27.29 Notes: (1) Net NED benefits are defined as NED benefits less the costs of operations, maintenance, and investigations. Since the costs associated with expenses and oversight by the Assistant Secretary of the Army (ASA) serve all Corps programs, including those we did not calculate benefits for in this report, this report does not account for those costs.". (2) The Benefits and Revenues numbers are not additive. 5
6 Ecosystem Restoration UMRR (EMP) Habitat Rehabilitation Results Bertom and McCartney Lakes Significant increase in # of Fish because of project CPUE(#/hr) Const Black & White Crappie > 3.9" Largemouth Bass > 4.9" Bluegill > 2.9" 6
7 Environmental Improvements: Salmon Species Recovery 7
8 Cycle of Infrastructure Development Create and Articulate the VISION Develop and Document the PLAN Modify and EXECUTE the Plan 8
9 Changing Perspectives on Infrastructure United States Other Emerging Powers Investments Enabling Resilience & Recapitalization Environmental Enlightenment Economic Efficiency Nation Building Driving Forces Agriculture - Food Industrial - Manufacturing Transportation Energy - Hydrocarbon Technology Today 2010s 2000s 1980s 1960s 1940s 1920s 1900s 1800s Wear and Tear Disabling ~75% of the US population was born after Less than 25% of the population experienced the building of our nation s key infrastructure Hierarchy of Public Works Needs 9
10 The 20 th Century Golden Age of Infrastructure Construction 10
11 U.S. Ports and Inland Waterways: Vital to our National Economy 11
12 Billions of FY 2011 Dollars $12 $10 $8 $6 $4 Historical Investments by USACE Functional Category 1928 to 2011 ~$70.00 per person in the US! ~$56.00 per person in the US! Shifting Priorities: Completed Major Projects Fiscal Pressures Environmental Rest / Sust ~$18.00 per person in the US! $2 $ Year Navigation Flood Multipurpose MR&T Dredging 12
13 Environmental Program Funding $7,000 $6,000 $5,000 $4,000 $3,000 $2,000 $1,000 $0 Inflation-Adjusted (FY 2013 Price Levels) Funding Trends by Business Line, FY01-FY14 ($ Millions) FY01 FY02 FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 Aquatic Ecosystem Restoration Environmental Infrastructure/Other Recreation Regulatory Stewardship FUSRAP ASA (CW) Expenses Water Supply Emergency Management Hydropower Dam Safety Flood and Coastal Storm Damage Reduction Navigation 13
14 CANADA INNESOTA Grand Marias Duluth Superior Two Harbors Ashland Lake Superior Keweenaw Waterway Ontonagon Presque Isle Marquette Little Bay de Noc Grand Marias Grays Reef Channel in Straits of Mackinac CANADA St. Marys River DREDGED MATERIAL MANAGEMENT STATUS Critical Dredged Material Management issues could severely restrict channel availability within 5 years Pressing Dredged Material Management issues could severely restrict channel availability within 10 years. No pressing issues within next 10 years; continue to work on long range planning such as DMMPs. Cheboygan WISCONSIN Menominee Charlevoix Alpena Green Bay Kewaunee Frankfort MICHIGAN Manitowoc Manistee Ludington ANNUAL DREDGING REQUIREMENT (CY) Sheboygan Port Washington Muskegon Harbor Saginaw Harbor Beach CANADA 800K Milwaukee Kenosha Waukegan Grand Haven Holland Rouge River St. Clair River Channels in Lake St. Clair NEW YORK 100K 250K Chicago River & Harbor Calumet St. Joseph Harbor Detroit River Monroe 50K 95K Toledo PENNSYLVANIA <50K IN ILLINIOS INDIANA OHIO
15 BUILDING STRONG
16 USACE Capital Stock Value by Functional Category, 1928 to 2011 Billions of FY 2011 Dollars $300 $250 $200 $150 $100 $500 Billion Construction Investment $50 $ From System Build-Out to Benign Neglect Year Navigation Flood Multipurpose MRT Dredging 16
17 Infrastructure Consequences 17 17
18 2013 Report Card for America s Infrastructure by the American Society of Civil Engineers Aviation D Ports C Bridges C+ Public Parks & Recreation C- Dams D Rail C+ Drinking Water D Roads D Energy D+ Schools D Hazardous Waste D Solid Waste B- Inland Waterways D- Transit D Levees D- Wastewater D Estimated investment needed by 2020 = $3.6 Trillion BUILDING D+ America s Cumulative G.P.A. A = Exceptional B = Good C = Mediocre D = Poor F = Failing 18 BUILDING STRONG STRONG
19 Long Term Civil Works Funding Trends: Changing the Character of the Corps Appropriation ($Million in 2012 $) O&M Constr Invest
20 EMERGING GAME CHANGERS SIX UPHEAVALS: Emerging Global Competitors Escalating Globalization (Trade Pan Canal) Explosive Agricultural Productivity Shifting Hydrocarbon Production Centers Resurgence of US Manufacturing Climate Change and Sea Level Rise 20
21 Civil Works Transformation VISION: Deliver essential & enduring water resource solutions, utilizing effective transformation strategies OUTCOME: Achieve a Balanced and Sustainable National Civil Works Program by Improving Performance 21
22 Transform Civil Works Deliver enduring & essential water resource solutions by applying effective transformation strategies.? 22
23 Key Influencers: Water Resources Development Acts , 2000, 2007 & 2014 (WRRDA) 2002: Planning Excellence Program 2005: Hurricane Katrina -- Risk 2010: Congressional ban on Earmarks 2012: Planning Modernization: Portfolio Reclass SMART Planning 3x3x3 Rule 2015: Refocus Planning on the FOUR P s Planning Program Chief s Reports Trends 22 Chief s Reports: = Pres = 27+ FY15 Est. = FY00FY01FY02FY03FY04FY05FY06FY07FY08FY09FY10FY11FY12FY13FY14FY15FY16FY17FY18 Signed Chief's Reports Signed Chief's Reports (Projected)
24 The Four Ps of Planning Modernization Investing in Planner s Knowledge Enhance the capability and competency in the Planning Community Why: Our People are our future. People Projects Delivering on our Commitments Deliver timely, cost effective, and high quality products Why: Plan for the future by addressing the nation s water most critical water resources needs. SMART Planning and 3x3x3 Improve and develop efficient and cost effective processes for GI and beyond Why: Deliver a sound investment in infrastructure planning for taxpayers. Process Program Sustainable for the Nation s Future Needs Manage an accountable and responsive Program Why: Provide the Water Resources Planning experience and expertise unique to the Corps of Engineers.
25 Planning Portfolio Transition Resumptions WRRDA Studies Planning Modernization FY15 FY16 FY17 FY18 FY19 FY Assumptions: Universe is comprised of funded studies Studies will be completed within 3 years New start ramp up: FY16 (6); FY17 (10); FY18 (15); FY19 (20); FY20 (25) Three inactive studies will move to active each year Legacies
26 Planning Portfolio Life Cycle Completed CWRB On-Going Studies 40 Pre-Study Scoping Year 1 Year 2 Year 3 Year 4 Year 5 Steady state 105 Studies Average 500K a year = $52.5M
27 Some Inevitable Empires Egypt British Empire Roman Empire Charlemagne Ming Dynasty Ottoman Empire Philip of Macedon Napoleon s French Empire Soviet Union Aztec Empire 27 27
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