USACE CIVIL WORKS UPDATE National Waterways Conference St

USACE CIVIL WORKS UPDATE National Waterways Conference St. Louis, MO US Army Corps of Engineers BUILDING STRONG® Edward E. Belk, Jr PE Chief, Programs Integration Division Directorate of Civil Works September 27, 2017 1

ARMY CIVIL WORKS LEADERSHIP H Q D A LTG Todd Semonite Chief of Engineers & CG USACE H Q U S A C E Doug Lamont, SES Sr. Official Performing Duties of ASA(CW) Vacant PDASA Eric Hansen, SES DASA, Mgt/Bud Vacant DASA, Proj Rev MG Ed Jackson James Dalton, SES Eddie Belk, SES Dr. Larry Mc. Callister, SES DCG-Civil/Emerg Ops Director, Civil Works Chief, Programs Chief, Engineering & Constr Photo not available Tom Smith, SES Jose Sanchez Chief, Ops/Reg Acting Dir. , Contingency Ops Wesley Coleman Acting Director Institute for Water Resources 2 Vacant DASA, Pol/Leg Tab Brown, SES Chief, Planning/Policy Corps Enterprise Leadership Brenda Johnson-Turner, SES (Real Estate) Karen Baker, SES (Environmental) Ray Alexander, SES (IIS) Dr David Pittman, SES (ERDC) David Cooper, SES (Chief Counsel) Stu Hazlett, SES (Contracting)

CIVIL WORKS: FOCUS ON DELIVERY Ø Embrace and Operationalize Risk-Informed Decision Making Ø Make, Justify and Document Decisions at the Most Appropriate Level Ø Synchronize Headquarters Functions to Support MSC and District Project Delivery Ø Integrate and Synchronize Agency Policy and Guidance Ø Incorporate Social and Environmental Benefits into Project Formulation, Design and Implementation 6

CIVIL WORKS INVESTMENT TRENDS (EXCLUDES SUPPLEMENTAL FUNDING) Historic Budget and Appropriations Trends $7, 000, 000 FY 2018 Budget Amount Appropriations Trend $6, 000, 000 $5, 002 M $5, 000, 000 $4, 000, 000 $3, 000, 000 $2, 000, 000 $1, 000, 000 $0 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 INVESTIGATIONS OPER & MAINT MR&T FC&CE ASA(CW) CONSTRUCTION REGULATORY GENERAL EXPENSE FUSRAP HISTORIC APPROPRIATIONS 7

CIVIL WORKS FY 2017 APPROPRIATION * $ Millions Total: $6. 038 Billion by Account Water Supply $21 M 0 $20 nm ro vi M En 88 $5 CG FU S Mi ss Navigation, MR&T M Ports $1, 462 M P$ 112 l ta Construction $1, 876 M GI RA en Expenses ** $186 M tory ula 2 M Reg M $11 0 $20 RAP S FU O&M Flood Damage FUSRAP Navigation, Inland Reduction Reg $1, 209 M $1, 731 M FCCE . R . & $3 Trib 62 s. M Exp Investigations $121 M r owe. M rop Hyd $199 Recreation $293 M Operation & Maintenance $3, 149 M by Business Line (Est. ) Expenses ** $186 M ry to ula Reg M Flood & Coastal Emergencies $32 M * Does not include supplemental appropriations ** Includes Office of Asst. Sec. Army (Civil Works) 8 Emergency Management $37 M

MAJOR CONSTRUCTION PROJECTS Columbia R. at Mouth ($5 M or More in FY 17 Work Plan) 16 Mud Mtn. Dam 22 70 Columbia R. Fish Mitigation Delaware R. Fargo-Moorhead 20 Missouri R. Fish & Wildlife Recovery 7 Yuba R. Basin Sacramento R. 8 23 Folsom Dam Bank Protection 53 Natomas Basin 71 49 Isabella Dam Santa Ana River Mainstem Flood Risk Management Aquatic Ecosystem Restoration Navigation FUSRAP Upper Miss. R. Restoration 31 OH & ND Envi. Infrastructure 33 E. Br. Clarion R. Lake Muddy R. 15 Maywood 56 Mc. Cook &Thornton Res. 7 Luckey Shallow Lamds Des Moines R. 9 Boston 18 Hbr. 34 10 Raritan Basin 7 Great Egg Hbr. 6 12 62 16 5 5 Chicago Du. Pont 9 Iowa Army Ammunition Plant 6 Bolivar 82 7 Delaware Sanitary & Monongahela Dam Missouri R. Levees 42 Wood R. 63 Coast 32 Ship Canal Locks/Dams Poplar Island Levee St. Louis 2, 3, 4 Topeka 8 17 Blue R. 30 26 Levisa & Tug Forks 12 AIWW Bridges 22 Turkey Cr. 20 at Deep Cr. Ohio R. Shoreline Olmsted Lock & Dam Kentucky Lock & Dam 39 40 Center Hill Lake 12 Carolina Beach Chickamauga Lock 37 5 Brunswick Co. 7 Myrtle Beach Bayou Meto (MR&T) 12 18 Charleston Hbr. Yazoo Basin (MR&T) 28 250 Central City, Ft. Worth 6 J. B. Johnston W’way 6 60 44 Miss. R. Channel (MRT) Miss. R. Levees (MR&T) 43 Savannah Hbr. 18 Jacksonville Hbr. Atchafalaya Basin (MR&T) 11 7 Comite R. Buffalo Bayou & Tribs. 13 9 La. Coastal 9 Tampa Hbr. Brays Bayou 12 5 Houston. Pinellas Co. 16 Galveston Ship 68 San Antonio Channel 10 Herbert Hoover Dike Channel S. Fla. Ecosystem Restoration 115 Multipurpose Numbers in circles = $ million budgeted 9

FY 2017 – NEW STARTS • Investigations Ø Atlantic Intracoastal Waterway Bridge Replacement at North Landing, VA (NAV) • Construction Ø Boston Harbor Deep Draft Improvements, MA (NAV) Ø Charleston Harbor Deep Draft Navigation Improvements, SC (NAV) Ø Jacksonville Harbor Deepening, FL (NAV) Ø Tampa Harbor, Big Bend, FL (NAV) Ø Ohio River Shoreline, Paducah, KY (FRM) Ø Mud Mountain Dam, WA (ENR) 7

CONSTRUCTION PROJECTS IN FY 18 BUDGET Columbia R. at Mouth 22 $5 M or More. Actual funding for these and other projects to be determined in FY 18 appropriation 34 Mud Mtn. Dam 70 Columbia R. Fish Mitigation Missouri R. Fish & Wildlife Recovery 30 33 6 Folsom Dam 21 Natomas Basin Iowa Army Ammunition Plant 7 58 Maywood Shallow Lamds Luckey 16 7 12 Yuba R. Basin Hamilton City 8 Boston Hbr. Upper Mississippi River Restoration E. Br. Clarion R. Lake 37 50 20 Raritan Basin 15 Du. Pont 36 Poplar Island 25 St. Louis 58 Isabella Dam Olmsted Lock & Dam 175 Santa Ana River 25 Rough R. Lake 29 Center Hill Lake 40 Mainstem Lower Miss. R. Mainstem (MR&T) 108 50 Flood Risk Management Savannah Hbr. Aquatic Ecosystem Restoration Navigation Buffalo Bayou & Tribs. 16 Herbert Hoover Dike FUSRAP S. Fla. Ecosystem Restoration Multipurpose 82 77 Numbers in circles = $million budgeted 8 BUILDING STRONG®

FY 2018 KEY BUDGETING METRICS • CONSTRUCTION • All – Meet environmental, legal, mitigation requirements • FRM, NAV, HYDRO – Benefit to Cost Ratio (BCR) • FRM, NAV – Dam Safety & Seepage Stability (Continuing DSAC 1 & most DSAC 2) • FRM – Risk to Life Index (Warning time, flow, depth, …) • AER – Point values for loss prevention for significant natural resources • NAV – Life Safety • O&M • FRM, NAV, HYDRO – Risk & Consequences Assessment • AER, ENS, FRM, NAV, HYDRO – Biological Opinion; Efficiency of habitat acres improved. • REC – Park Capacity and Facility Condition Index, Visitation … • NAV – Tonnage movements (Harbors: tons; Waterways: ton-miles) • NAV – Subsistence Harbors and Harbors of Refuge • ALL ACCOUNTS • Continuing/New/Completing/Years to Complete • ESA & Regulatory compliance • Health, Safety, Caretaker, Legal, Subsistence 9

FY 17/18 JOURNEY • 27 Feb • 16 Mar • 27 Mar • 20 Apr • 21 Apr • 05 May • 23 May • 24 May OMB Verbal Pass Back to Corps/Army Administration Budget Blueprint Released Chief Recommendations Briefed to Army OMB FY 18 Passback Corps/Army Reclama FY 17 E&W Approps Signed into Law FY 18 Budget Release FY 18 Budget Hearing, FY 17 WPlan Release 13

POLICY CHALLENGES/OPPORTUNITIES Program Development Challenges • Climate Change Adaptation • Declining infrastructure performance, deferred maintenance and recapitalization of $270 B, and White House infrastructure initiative • Construction Backlog of $75 B and Deauthorization Process • Keeping Continuing Auth Program Healthy (New Starts, Resumptions, etc) • Sustainable Long Term Investment Planning vs. Funding Uncertainty Execution Challenges (USACE Credibility and Reliability) • No-Earmark Appropriations, Work Plans, and Two-Tier Program • Carryover – Remarkably Sensitive • Reprogramming Limitations • Continuing Contract Limitations • Cost Growth and Life Cycle Cost Management • Execute the Program, Deliver on Schedules/Commitments 14 11

CLOSING THOUGHTS § Addressing the Nation’s Infrastructure Investment Gap is a Shared Federal, State and Local Responsibility § The Corps Doesn’t Deliver Anything by Itself… Critical that We Not Lose Focus on Our Partners and Our Commitments § Navigation Investment is Essential for the Nation’s Global Trade and International Competiveness § Economically Justified FRM Investment Reduces Risk to Economic Activity, Lives, Livelihoods and Quality of Life • Infrastructure Investment: Financial (and Generational…) Challenge • Elevated Priority Afforded to Infrastructure Investment? What are YOUR ideas? 16

THANK YOU!! BUILDING STRONG

FUTURE OPPORTUNITIES & DEMANDS • U. S. Population Projected to Increase by 110 M in 30 Years • Over 50% of US Population Located within 50 Miles of Coastline…Plus “Center Coast”…. FRM Implications • U. S. Imports and Exports Projected to Increase Significantly • Panama Canal New Locks Now Opening - Worldwide Fleet of Post-Panamax Vessels to Increase • Opportunities for Economically Justified Port Expansions • Improving Grain Yield Trends and Improved Panama Canal Efficiencies Increased Grain Exports • Environmental Mitigation Activities Likely Significant • Future AF/P 3 Opportunities, Where They Make Sense 14